Top Stories

TYSONS CORNER, VA. — Grubb & Ellis has brokered the sale of a seven-building office portfolio in Tysons Corner for $140 million. PS Business Parks Inc. acquired the 736,446-square-foot portfolio from Cityline/DLJ Real Estate Capital Partners. The properties are located along Jones Branch and Westbranch drives. They include the 151,000-square-foot Northampton Building, the 124,000-square-foot Amherst Building, the 123,000-square-foot Gloucester Building, the 123,000-square-foot Lancaster Building, the 80,000-square-foot Culpeper Building, the 77,000-square-foot Brunswick Building and the 57,000-square-foot Dickenson Building. Tenants for the properties include the U.S. General Services Administration, government contractors, law firms, and medical, technology and professional services firms. “This transaction is evidence that investors are regaining confidence in the suburban markets, said Eric Berkman, an executive vice president with Grubb & Ellis and one of the deal's brokers. “We received tremendous buyer interest in these buildings, which are well positioned to capitalize on the extension of the Metrorail Dulles Corridor Project and the implementation of Fairfax County's new comprehensive plan for Tysons Corner.” Officials are developing a plan that will redesign the city's transportation system while increasing the number of office buildings and housing units. The aim is to provide housing for 100,000 residents and 200,000 total jobs. Berkman partnered …

NEW YORK CITY — DiamondRock Hospitality Co. has signed a purchase agreement to acquire a hotel currently under construction in New York City's Times Square. The deal could be valued as high as $178 million. Highgate Holdings and an affiliate of Walton Street Capital are currently developing the hotel at the intersection of West 42nd Street and Broadway. It is under a 24- to 30-month construction timetable that would have the hotel open in 2013. Current plans call for the construction of 250 to 300 guest rooms. However, the number of guest rooms could increase to 400 if the developers are able to obtain necessary approvals. DiamondRock's purchase price for the hotel is based on the number of rooms it contains upon completion as well as the completion date. The original purchase price is based on a per-room price of $450,000, which would put the total price between $112.5 and $135 million. If 400 guest rooms are constructed, the purchase price will be $445,000 per room, which totals $178 million. DiamondRock has committed to an initial deposit of $20 million. Once certain construction milestones are reached, the company will make an additional $5 million deposit. If approvals are obtained to …

BELLEVUE, WASH. — Holliday Fenoglio Fowler (HFF) has closed on a $205 million acquisition loan for Bravern Office Commons, an approximately 750,000-square-foot, Class A office property located in Bellevue. As previously reported, Principal Global Investors purchased the property from its original developers, Investcorp and Schnitzer West, for $410 million. The loan, which was provided by Pacific Life Insurance Company, carries a 10-year term and a fixed interest rate. A HFF team that included New York City Senior Managing Director Michael Tepedino, San Francisco Senior Managing Director Bruce Ganong and Dallas Executive Managing Director Jody Thornton arranged the financing on behalf of Principal Global Investors. Investcorp and Schnitzer West developed Bravern Office Commons in 2007. It is wholly leased to Microsoft. The office component is part The Bravern, an $800 million mixed-use development. In addition to the two high-rise towers and adjacent parking lot that make up the office component, The Bravern includes two luxury residential towers containing 455 units as well as approximately 310,000 square feet of luxury retail space. Only the office component was included in the financing. — Coleman Wood

NEW YORK — Marcus & Millichap has brokered the sale of a three-property ShopRite portfolio for $37.07 million. The portfolio includes two shopping centers anchored by ShopRite and one freestanding ShopRite grocery store. All three properties are located in Upstate New York. The portfolio includes the ShopRite Plaza located on Route 94 South in Warwick, the ShopRite Plaza located in Ellenville and a freestanding ShopRite located adjacent to Fairview Plaza in Hudson. The properties traded for an average of $182 per square foot. Steven Siegel of Marcus & Millichap's National Retail Group in Manhattan represented the seller, a New York-based institutional owner, as well as the buyer, a New York-based buyer that specializes in supermarkets. “Buyers were interested in this portfolio because the properties are supermarket-anchored and management-free,” Siegel said in a statement. “SRS has a long-term master lease on the two multi-tenanted properties within the portfolio. The triple-net aspect of the product appealed to buyers throughout the Unites States — institutions, REITs, local players, shopping center owners and 1031 buyers — who were bidding against each other.” — Coleman Wood

CHICAGO — A joint venture between Red Sea Group USA and Server Farm Realty has acquired a Chicago data center from The Northern Trust Company. The eight-story building, which is currently undergoing renovations, totals 443,446 square feet over eight stories. The property, which is located on 5.23 acres at 840 South Canal St., is currently undergoing a $200 million conversion into a multi-tenant data center. The building had previously been used by Northern Trust as a technology, data and operations center. It was originally developed in the 1940s by General Electric as a manufacturing facility. When the data center conversion is complete, 840 South Canal Street will be one of the largest data centers in the Midwest. “The data center market in the Loop area has been tight for some time now due to the limited supply of qualified alternatives,”said Geoffrey Kasselman, the president of Op2mize, the brokerage firm that represented the buyer in the deal. “This property helps fill that void with its 38-megawatts of dedicated power from multiple feeds, heavy floor loads, high ceilings, redundant infrastructure, robust security, connectivity from 10 different carriers and, most of all, speed to market.” Kasselman was joined by Op2mize broker Thomas Bueltmann …

CHARLOTTE, N.C. — A partnership between locally based Trinity Capital Advisors and Philadelphia-based Rubenstein Partners has purchased downtown Charlotte's NASCAR Plaza. The acquisition price was not disclosed, but the partnership purchased the debt and equity in the property, which is located at 550 South Caldwell St. NASCAR Plaza has had a challenging time since its completion in early 2009. Its developer, an affiliate of Carmel, Ind.-based Lauth Property Group, filed for Chapter 11 bankruptcy shortly after the building's completion. Lauth then defaulted on its mortgage for the property and Wells Fargo & Co., the managing lender, initiated foreclosure proceedings. The 20-story, 390,000-square-foot office tower has struggled to attract tenants. NASCAR is the building's anchor tenant, occupying approximately 120,000 square feet. It is joined by six other smaller tenants including the FDIC and the Charlotte Regional Partnership. However, approximately 60 percent of the building remains vacant. Trinity Capital and Rubenstein's purchase may just signal a turning point for the Class A trophy tower. “In short, I think the asset may have had a stigma due to the financial distress of the previous ownership,” says Walker Collier, managing director of Trinity Capital Advisors. “It is important for prospective tenants to know that …

LAKE GROVE, N.Y. — Manhattan-based Prestige Properties has purchased a Long Island retail center from Centro Properties for $48 million. DSW Plaza is a 251,222-square-foot property located on Middle Country Road. It is directly opposite Smith Haven Mall, a 1.4 million-square-foot shopping center and one of Long Island’s primary retail draws. DSW Plaza was fully leased at the time of closing by a tenant roster that includes anchors Toys “R” Us, DSW Shoe Warehouse, Staples and Michaels. Additional tenants include Golfsmith, Tuesday Morning, Lenscrafters and Houlihan’s Restaurant. Approximately half of the center is leased through 2018. As part of the deal, Prestige assumed $27 million in debt. The mortgage carries an interest rate of 4.75 percent and interest-only payments. Gary Gabriel, Andrew Merin, David Bernhaut and Jared Zimmel of Cushman & Wakefield’s Metropolitan Area Capital Markets Group arranged the transaction. The same group was also responsible for arranging the sale of the property to Centro in 2003. “Retail investment opportunities have been scarce throughout the tri-state area this years, and even more so on Long Island,” Gabriel said. “That being the case, this property’s fantastic location made it a very compelling purchase. We received a significant number of offers from …

ORLANDO — Orlando-based CNL Lifestyle Properties has acquired a 29-property senior housing portfolio for $630 million. CNL purchased the portfolio in a joint venture with McLean, Va.-based Sunrise Senior Living, which most recently owned the property in a joint venture with Arcapita. The communities in the portfolio are located across 12 states, primarily in metropolitan areas. They contain a total of 2,082 units. The average age of the communities is approximately 10 years. As part of the agreement, CNL will own a 60 percent interest in the joint venture, and Sunrise will own the remaining 40 percent. Sunrise will also operate the communities under a long-term agreement. The transaction marks CNL’s entry into the senior living market. The REIT specializes in the ownership of lifestyle properties that include ski resorts, mountain lifestyle properties, attractions, golf communities and marinas. “With this transaction, CNL Lifestyle Properties has created a $3.1 billion portfolio of assets that appeal to individuals at all stages of life, from families with young children to people in retirement,” said Byron Carlock, president and CEO of CNL, in a statement. “This acquisition further enhances our investment thesis at a time when demand for senior living communities is increasing.” Goldman …

MOUNT POCONO, PA. — Thousand Oaks, Calif.-based Silagi Development & Management has purchased the former Liz Claiborne apparel distribution facility in Mount Pocono. The 615,000-square-foot property is located on 80 acres in Mount Pocono Industrial Park. It is a short distance from interstates 80 and 380. The distribution facility features 38-foot clear ceilings, 45-foot by 45-foot column spacing, 52 dock-high loading doors, three drive-in doors, rail access and 25,000 square feet of office space. Silagi purchased the property for $7.3 million. It plans to lease the facility as a logistics center. It will increase the number of truck doors in the near term. Michael Treacy of Philadelphia-based Binswanger negotiated the deal. The seller’s name was not disclosed. The purchase is Silagi’s first in Pennsylvania. — Coleman Wood

BETHESDA, MD. — Walker & Dunlop has provided a $104.7 million acquisition loan to Ark Holding Co. for the purchase of 18 skilled nursing facilities in South Carolina, North Carolina and Georgia. The financing was funded utilizing the HUD 232/223(f) loan program that provides low-interest rate, non-recourse financing with flexible prepayment requirements. There were several critical aspects to this deal including accounts receivable financing, a master lease and a hard close prior to year end, notes Steve Ervin, senior vice president and co-head of Walker & Dunlop's FHA Group. “The most unique aspect was that the loan was a purchase and closed pre-year end after getting all the commitments,” says Ervin. “Additionally, the loan was executed seamlessly with 18 loans closing on the same day, which is very difficult with HUD.” This transaction represents Walker & Dunlop's second large-scale skilled nursing financing in 2010 exceeding $100 million. In August 2010, the company funded a 16-facility refinance of the IBHSAR facilities in Florida for $162.2 million. — Amy Bigley