LONG BEACH, CALIF. — Long Beach-based healthcare trust HCP has entered into agreements for two major acquisitions totaling $6.75 billion. First, the company announced plans to acquire the real estate assets of Toledo, Ohio-based HCR ManorCare for $6.1 billion. The portfolio includes 338 post-acute, skilled nursing and assisted living facilities. The properties are located in 30 states including Florida, Illinois, Michigan, Ohio and Pennsylvania. HCR ManorCare will continue to operate the properties in the portfolio under long-term, triple-net, master leases. The initial remaining terms of the leases range from 13 to 17 years. With extension options factored in, the remaining terms for the leases range from 23 to 35 years. In addition, HCP will have the option to acquire a 9.9 percent interest in HCR ManorCare for an additional purchase price of $95 million. The final part of the agreement will include Paul Ormond, chairman, president and CEO of HCR ManorCare, joining HCP's board of directors. HCP will fund the purchase, in part, with $3.528 billion in cash, some of which will be obtained through a public offering of 31 million shares of common stock. HCP has also received a commitment for a bridge loan of up to $3.3 billion. …
MONTVALE, N.J. — Montvale-based The Great Atlantic & Pacific Tea Company (A&P) has filed for Chapter 11 Bankruptcy protection under the U.S. Bankruptcy Court for the Southern District of New York. The filing will facilitate A&P's financial and operational restructuring, which is designed to restore the company to long-term financial health. The company will continue to operate its 395 stores, which are located throughout Connecticut, Massachusetts, New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia and Washington, D.C. Sam Martin, president and CEO, stated in a press release, “We have taken this difficult but necessary step to enable A&P to fully implement our comprehensive financial and operational restructuring.” In October, the company announced a turnaround plan, which included a new management team, reducing structural and operating costs, improving the company's value proposition for customers, and enhancing the customers' experience in the stores. The reorganization will be lead by Frederic F. Brace serving as chief restructuring officer. Brace currently serves as chief administrative officer for A&P. Additionally, the company has entered into an $800 million debtor-in-possession facility with JPMorgan Chase & Co. that must receive court approval The financing will enable A&P to continue paying local suppliers, vendors, employees and others in …
OAK BROOK, ILL., AND NEW YORK CITY — Subsidiaries of Inland American Real Estate Trust and Centro Properties Group have entered into a $471 million joint venture for the ownership of a shopping center portfolio. The 25 properties are primarily grocery-anchored and necessity-based community shopping centers. They contain a total of 4.5 million square feet of space and are located across 13 states. Average occupancy for the portfolio was 91 percent; national tenants at the centers included Walmart, Publix, Kroger, Best Buy, Kohl's, Staples, Bed Bath & Beyond and T.J. Maxx. Following the closing of the sale, the joint venture procured $310 million in CMBS financing for 24 of the properties in the portfolio. The new financing, which carries a 10-year term, will replace the existing debt, which would have came to term this week. The new financing was provided by J.P. Morgan and Goldman Sachs. Both REITs have been previously involved in the portfolio. Centro previously owned the portfolio before selling it to the joint venture. Inland previously had a participation on a portion of the first mortgage that was retired following the portfolio's closing. Moving forward, Centro will serve as managing member for the portfolio. Inland will have …
NEW YORK CITY — Harbor Group International (HGI) has acquired 1412 Broadway, a trophy office tower located near Times Square in Midtown Manhattan, for $150 million. The company's near-term plans include completing a $10 million in capital improvements program for the building. Constructed in 1926, 1412 Broadway contains 415,135 square feet over 24 stories. The property was 84 percent leased at the time of closing to a tenant roster that includes fashion designers Jones New York and Escada. The building had recently undergone a repositioning program completed by the seller, Murray Hill Properties. As part of the project, the building's electrical and mechanical systems were modernized, the lobby entrance was refurbished, and elevator cabs and common areas were upgrades. HGI completed the purchase in a direct deal with Murray Hill Properties. Joel Siderow of Murray provided in-house representation for his company. “1412 Broadway presented an excellent opportunity to acquire a core office building in Manhattan's Times Square submarket,” said Jordan Slone, chairman and CEO of HGI, in a statement. “With little commercial development expected in the immediate future, the building will continue to appeal to a wide range of tenants and benefit from positive rental rate trends in a rapidly …
TEMPE, ARIZ. — Vestar Development Co. has partnered with Rockwood Capital to take ownership control of the Tempe Marketplace shopping center. The joint venture acquired the interest formerly controlled by DLG/Credit Suisse for $280 million. Vestar and DLG originally partnered to develop the 1.3 million-square-foot shopping center, which is located at the Loop 101 and 202 Freeway in Tempe, in 2007. Vestar will serve as the managing partner in the new joint venture. Concurrent with the deal's closing, Tempe Marketplace received $200 million in new permanent financing, which was provided by GACC. Vestar Marketplace was 94 percent occupied at the time of closing. Retail tenants at the regional center include JCPenney, Target, Best Buy, Old Navy, GAP and Barnes & Noble. Restaurants include California Pizza Kitchen, Lucille's Smokehouse Barb-B-Que, Cadillac Ranch, Maria Maria, Kabuki Japanese Restaurant and The Keg Steakhouse & Bar. Tempe Marketplace also contains entertainment options including the Harkins Tempe Marketplace 16 movie theater and Dave & Buster's. This is not the only deal in which Vestar is involved. While details could not be released, the company indicated that before the end of the year it will close on two California retail properties totaling approximately 400,000 square feet …
BOSTON — CB Richard Ellis (CBRE) Capital Markets has arranged a $166.65 million loan for the refinancing of a seven-property apartment portfolio. The borrower is a fund managed by Eaton Vance Management. The seven properties contain a total of more than 2,100 units. They are located in Riverside, Calif.; Phoenix; Houston; Atlanta; and Alltamonte Springs, Boynton Beach and Pembroke Pines, Fla. The loans were underwritten individually on a non-crossed basis. The debt was originated through Freddie Mac's Capital Markets Execution program. The loans carry 10-year terms and fixed interest rates. Details about the properties were not disclosed. Paul Donahue of CBRE's Boston office led the team that arranged the financing. He was assisted nationally by CBRE team members Charles Foschini, Robert LaChapelle, Rocco Mandala, Holly Minter and Troy Tegeler. “CBRE created a stellar team with senior finance professionals located in each market, assisted by investment sales and valuation teams, that provided timely analysis and underwriting to support Freddie Mac in providing attractive debt to the borrower,” Donahue said in a statement. — Coleman Wood
CAMBRIDGE, MASS. — A joint venture between Rockwood Capital and The Beal Companies has refinanced the One Kendall Square life sciences campus in Cambridge. The $175 million mortgage contains a floating interest rate and was provided by KBS Real Estate Investment Trust II. One Kendall Square is located on 9 acres just north of the campus of the Massachusetts Institute of Technology. It comprises nine buildings containing 661,141 square feet of space. Also included in the campus are two storage facilities, a 1,530-space parking garage and a nine-screen movie theater. Cushman & Wakefield Sonnenblick Goldman helped arranged the loan on behalf of the owners. The team included Steve Kohn, Richard Swartz, Alex Hernandez, Jay Wagner and Michael Henry. “The strong lender response we received reinforces the notion that in today's economic environment there exists a deep well of liquidity for core properties such as One Kendall,” said Kohn in a statement. Swartz added, “The financing further highlights an evolving trend that we are seeing since the start of the financial crisis. Namely, the rise to prominence of a new breed of lenders, debt funds and mortgage REITs that have stepped into the capital markets, providing much needed liquidity in the …
NEW YORK CITY — Alexandria Real Estate Equities is filling a void in the New York City office market with the completion of Phase I of a life science campus in Manhattan. The first building at the Alexandria Center for Life Science – New York City is a 15-story structure containing 310,000 square feet of space. The building is located at 450 E. 29th St. and already has leases signed or commitments for almost all of its space. ImClone Systems, an Eli Lilly & Co. subsidiary, will be headquartered in the new building. Other named tenants include Kadmon Pharmaceuticals and Firmenich. Alexandria Real Estate also gave indication that other tenants at the building will include a neuroscience translational research entity as well as a scientific collaboration unit for therapeutic innovation that is being sponsored by a large pharmaceutical company. The building will also house pharmaceutical company representatives as well as traditional venture capital firms. In addition to the office space, the LEED-Silver certified building contains Appella, a state-of-the-art conference and event center. It also features two restaurants by famed chef Tom Colicchio — Riverpark and an artisanal sandwich shop named wichcraft. Alexandria anticipates the life science campus will contain three …
SAVANNAH, GA., AND LOGAN, N.J. — Reno, Nev.-based developer Dermody Properties has sold two Class A industrial buildings in its development portfolio in two separate transactions. The properties, located in Georgia and New Jersey, total approximately 1.28 million square feet of distribution space. In the first transaction, Dermody sold a 689,400-square-foot building in Savannah to JLA Home, a company that specializes in home furniture products. The buyer will use the facility, which is located within Dermody's LogistiPort Industrial Park, as its East Coast assembly and distribution center. The building, which is LEED certified, benefits from close proximity to the deepwater Port of Savannah. Dermody developed the building in partnership with the Savannah Economic Development Authority. LogistiPort Industrial Park contains a total of 1.03 million square feet of industrial space with room for expansion. According to Dermody, the project was the first multi-building industrial park in the Southeast to achieve LEED certification. In the second transaction, Dermody sold a 599,500-square-foot property in Logan to an undisclosed financial institution. The building is located at 1150 Commerce Blvd. within the developer's Logisticenter at Logan industrial park. The LEED-Silver facility was originally developed in 2007 as a Northeast distribution center for Kimberly-Clark. Dermody Properties' …
LISLE, ILL. — Navistar, a heavy truck and diesel engine manufacturer, has purchased an 87-acre office/R&D campus in Lisle for use as its new corporate headquarters. The campus is situated at the intersection of Warrenville and Naperville roads in Chicagoland's I-88 Corridor. The seller in the deal was Alcatel-Lucent, which formerly occupied the 1.2 million-square-foot campus. In creating its new headquarters and R&D facility, Navistar plans to retain or create an estimated 3,100 jobs. The Chicago and Atlanta offices of UGL Services joined to broker the deal on behalf of Alcatel-Lucent. The brokerage team included Christopher Wood and Art Waldrop, managing directors of the Chicago and Atlanta offices, respectively. Other participating UGL brokers included David Stefanic, Scott Goldman, William Tom and Rick Nash. “UGL Services is very pleased to have been in a position to partner with Alcatel-Lucent in this significant facility disposition effort,” said Wood in a statement. “The successful close of this transaction is a very positive event for Alcatel-Lucent, Navistar, the Chicago region and the State of Illinois.” John Musgierd of Jones Lang LaSalle's Chicago office represented Navistar in the deal. The acquisition price was not disclosed. — Coleman Wood