ESCONDIDO, CALIF. — Escondido-based REIT Realty Income Corp. (RIC) has signed a definitive agreement to purchase a portfolio of single-tenant, net-leased properties for approximately $544 million. The portfolio contains 33 properties totaling 3.8 million square feet that are located in 17 states. While the vast majority of RIC's holdings are retail properties, a majority of this portfolio contains other property types. Distribution properties make up 34 percent of the portfolio's lease revenue, with tenants that include Aviall Services, Caterpillar, FedEx Corp. and International Paper. Manufacturing properties make up 8 percent of the portfolio's revenue, with tenants that include Coca-Cola and MeadWestvaco Corporation. Office properties make up 25 percent of the leasing revenue, with tenants that include Fiserv Inc., Novus International, Solae and T-Mobile USA. The final one-third of the portfolio comprises retail properties, with tenants that include AMC Theatres, Cinemark Theatres, Regal Cinemas and Walgreens. The portfolio has an average remaining lease term of more than 11 years. RIC will fund the purchase with cash on hand as well as through its revolving credit facility. The majority of the properties will close during the first half of the year. In a statement, Realty Income CEO Tom Lewis states that the …
NEW YORK CITY — Spanish retail giant Inditex Group has acquired a Fifth Avenue retail condominium for a whopping $324 million. The 38,750-square-foot condo, which is located at 666 Fifth Ave., traded for $8,361 per square foot — reportedly one of the highest prices ever paid for retail space in the United States. The seller was a joint venture between The Caryle Group and Crown Acquisitions, which purchased the entire 90,000-square-foot retail portion of the building from Cushner Cos. in 2008 for $525 million. With the condo's prime location, it is easy to see why it could fetch such a steep price. It is located near Rockefeller Center, the Museum of Modern Art and St. Patrick's Cathedral. It is on the same block as the flagship stores for Uniqlo and Hollister. New York-based real estate investment banking firm Savills helped arranged the deal on behalf of Inditex. The transaction included negotiating an early lease termination for the condo's tenant, the NBA Store, so Inditex could bring its apparel brand Zara into the location. “There is no better retail in Manhattan and our client has reinforced this through their acquisition,” said Borja Sierra, CEO of Savills Europe, in a statement. “Rather …
WASHINGTON, D.C. — A joint venture between Dune Real Estate Partners and Pantzer Properties has acquired the Magazine Portfolio for $460 million. The portfolio comprises eight apartment communities totaling 2,580 units that are located in the Washington, D.C., metro area. The Class A/B+ properties were constructed between 1975 and 1991. They include: • Barton's Crossing, a 532-unit property located in Alexandria, Va.; • Carlyle Station, a 408-unit property located in Manassas, Va.; • Fox Run, a 218-unit property located in Germantown, Md.; • Glen at Leesburg, a 134-unit property located in Lessburg, Va.; • Lionsgate at Herndon, a 328-unit property located in Herndon, Va.; • University Heights, a 467-unit property located in Ashburn, Va.; • Village at McNair Farms, a 283-unit property also located in Herndon; and • Watkins Station, a 210-unit property located in Gaithersburg, Md. Dune and Pantzer made the acquisition on behalf of Panco Strategic Real Estate Fund I, a 50-50 joint venture between the two companies. The transaction included the assumption of the properties' existing debt. Panco Management, the in-house management division of Pantzer Properties, will manage the communities under the brand name “The Point.” The Mid-Atlantic office of Jones Lang LaSalle brokered the deal. Law …
INDIANAPOLIS — The Indianapolis City-County Council has approved plans for the construction of a $155 million mixed-use project near Lucas Oil Stadium. The City also agreed to issue $86 million in bond financing to help fund the project. This is in addition to the $15 million the City and State have already committed to fund infrastructure improvements. North of South will be constructed on a 10-acre parking lot located along South Street between Delaware Street and Virginia Avenue. The parking lot had formerly been used by Eli Lilly & Co., which maintains its corporate headquarters nearby. Eli Lilly is partnering with local developer Buckingham Cos. to redevelop the site. At full build-out, North of South will contain 320 upscale apartments, 40,000 square feet of restaurant and retail space, a hotel operated by Dolce Hotels & Resorts, and a new flagship YMCA. The project's residential component will contain a mix of studio to three-bedroom apartments and townhomes. Eli Lilly plans to use some of the units as corporate housing that will provide easy access to its 15,000-employee campus. Apartment amenities will include a swimming pool and clubhouse, rooftop terraces and structured parking. Dolce plans to construct a 158-room hotel that will …
NEW YORK CITY — Denver-based multifamily investment trust UDR has reached a definitive agreement to acquire a high-rise apartment building in Manhattan's Financial District for $260.8 million. The seller was Witkoff Group. The property is 10 Hanover Square, a 23-story tower located on Hanover Square between Water and Pearl streets. Formerly the corporate headquarters for Goldman Sachs and Kidder Peabody, the building was converted into luxury apartments in 2005. It now offers 493 homes in a range of studio through three-bedroom units averaging 708 square feet. Amenities for the community include 24-hour concierge service, two lounges and a rooftop deck. The ground floor of the building contains 41,650 square feet of retail space and is anchored by the 28,000-square-foot Xtreme Gym New York. Other retail tenants include Fresco on the Go Restaurant, The Original Soupman Restaurant, Apple Bank and Starbucks Coffee. UDR will fund the purchase primarily through the assumption of a $192 million mortgage. The financing carries a 5.93 percent fixed interest rate and requires interest-only payments through December 2012. It matures in December 2015. UDR will also pay Witkoff approximately $64.3 million in operating partnership units and approximately $4.5 million in cash. “The expansion of our portfolio into …
TOLEDO, OHIO, AND KENNETT SQUARE, PA. — It's been a big week for the healthcare sector. Fresh on the heels of Ventas' $7.4 billion acquisition of Nationwide Health Properties comes news that Health Care REIT has agreed to acquire almost all of the portfolio of Genesis HealthCare in a $2.4 billion sale-leaseback deal. Health Care REIT will purchase 147 of Genesis' more than 200 post-acute care, skilled nursing and assisted living facilities. The properties are located in 11 Eastern U.S. states, with the largest concentrations in Maryland, Massachusetts, New Jersey, Pennsylvania and West Virginia. Genesis will lease the facilities back for a 15-year term on a triple-net basis. The lease is valued at approximately $3.86 billion. In addition, Health Care REIT will retain the option to purchase a 9.9 percent interest in Genesis for $47 million and will have the right to own certain facilities Genesis develops or acquires during the initial lease term. Genesis is headquartered in Kennett Square and is a wholly owned subsidiary of a joint venture between McLean, Va.-based JER Partners and Alpharetta, Ga.-based Formation Capital. The partnership purchased the company in 2007 in a public-to-private deal. Since, then, Genesis has generated 9 percent annual average …
SAN FRANCISCO — The JW Marriott San Francisco Union Square hotel has traded between two hospitality REITs. Thayer Lodging Group purchased the property from Ashford Hospitality Trust in an all-cash deal for $96 million, at a 3.7 percent capitalization rate. Built in 1987 and recently renovated, the JW Marriott is located at the corner of Post and Mason streets in the city's upscale Union Square neighborhood. The AAA, four-diamond property contains 337 guestrooms, including eight suites, over 21 stories. It features 14,000 square feet of meeting space including a 4,350-square-foot ballroom and a conference center. It also contains the restaurant California and the bar Eclectic. The hotel operates under a ground lease that expires in 2083. “The San Francisco lodging market is rebounding strongly and there is upside to the operating performance,” said O'Connor, a senior director with the Los Angeles office of Cushman & Wakefield Sonnenblick Goldman, which represented Ashford in the deal. “The offering appealed to a wide spectrum of international hotel investors given its recent comprehensive renovation, high-end market positioning, superior location and extremely high barriers to entry in this gateway market.” Ashford Hospitality Trust plans to use the proceeds from the sale to pay down a …
CHICAGO AND NEW YORK CITY — It is shaping up to be a blockbuster day for REIT deals. Chicago-based Ventas will become the largest healthcare REIT in the nation with its $7.4 billion acquisition of Nationwide Health Properties (NHP). In addition, reports are surfacing that private equity firm Blackstone is purchasing the American assets of Australian retail REIT Centro Properties Group for $9.4 billion. Under the terms of its agreement with NHP, Ventas will acquire all of NHP's outstanding shares in a stock-for-stock transaction. NHP shareholders will receive a fixed exchange ratio of 0.7866 Ventas shares for each share of NHP common stock. Based on Friday's closing price, this would give NHP shareholders a 15 percent premium over NHP's closing stock price that day. Upon closing of the deal, which is expected to occur in the third quarter, Ventas shareholders will own approximately 65 percent of the combined company, and NHP shareholders will own the remaining 35 percent. The deal would make Ventas the largest healthcare REIT in the nation, with a pro forma equity value of approximately $17 billion and a pro forma enterprise value of approximately $23 billion. The company would control 1,300 assets in 47 states and …
HOUSTON — Unilev Capital Corp. has purchased three office buildings that make up part of the Houston Galleria mixed-use development for $176 million. The seller was an affiliate of Walton Street Capital. The three Class A office buildings are located at 2700 Post Oak Blvd., 5051 Westheimer and 5065-5075 Westheimer. They contain a total of 1.06 million square feet of space, which was 90 percent leased at the time of closing. Tenants include Air Liquide, Southern Union, Merrill Lynch, Citigroup Global Markets, UBS, Banco Santander and BBVA Bancomer. A Holliday Fenoglio Fowler (HFF) team led by Senior Managing Director Robert Williamson represented Walton Street Capital in the deal. HFF was also responsible for arranging $130 million in acquisition financing on behalf of Unilev. A team lead by Senior Managing Director Wally Reid secured a 10-year, fixed-rate loan through J.P. Morgan Chase Bank. HFF will also service the loan. “During the process interest rates increased substantially,” said Williamson in a statement. “Unilev and the lender committed to close the transaction and both closed as originally agreed to, which is a testament to their character and abilities to bring capital in an ever-changing marketplace.” Houston Galleria is the primary draw of the …
MIAMI — A joint venture between Terranova Corp. and Acadia Realty Trust has acquired a portfolio of three retail properties located in Miami's South Beach submarket from Las Ramblas Associates for $51.9 million. The three properties contain a total of 61,443 square feet of space and are located along Lincoln Road, an 8-block, open-air pedestrian mall that is one of the city's best retail corridors. The portfolio traded at a price of $845 per square foot. The first property is located at 600 Lincoln Road. It contains 27,700 square feet of retail and office space over two stories. Anchors include Sushi Samba and Rancho Grande. The second property is located at 741 Lincoln Road. It contains 14,886 square feet of retail space over two stories. Anchors include Starbucks, Geox and Miss Yip. The third property is located at 715 Lincoln Lane. Tacontento anchors the 18,857-square-foot building, which abuts Macy's. The portfolio also contains an addition 39,750 square feet of development rights. “The three-property Lincoln Road acquisition greatly enhances our fashion-forward, street-front retail product,” said Stephen Bittel, chairman of Terranova, in a statement. “Terranova now has a 61,000-square-foot presence on Lincoln Road, once known as the '5th Avenue of the South,' …