MIAMI — Miami-based Lennar Corp. has acquired approximately $740 million worth of distressed real estate assets in three separate transactions. The sellers were three large financial institutions, making this one of the largest distressed purchases made from the private sector in recent memory. The combined portfolio comprises 397 loans and 306 properties. The loans carry a total unpaid principal balance of approximately $529 million, and the REO properties carry an appraised value of approximately $211 million. Approximately 65 percent of the assets are residential and 35 percent are commercial. The assets are spread across 17 states primarily in the Mid-Atlantic and Southeast regions. Rialto Investments, a division of Lennar, will be responsible for the day-to-day management and ultimate workout of the portfolio. Eric Feder, head of strategic development for Lennar and Rialto, sourced the transaction. In a statement, Stuart Miller, president and CEO of Lennar, said, “We have now completed transactions with both the FDIC as well as leading financial institutions. We expect the investment opportunities in both of these sectors to continue to grow as the FDIC and the banks work through their distressed assets.” In February, Lennar acquired a stake in two distressed portfolios held by the FDIC. …
MINNEAPOLIS — Though it is not expanding at the pace it has in recent years, mega retailer Target is still very active. Ryan Cos., which maintains a headquarters in Target's hometown of Minneapolis, is currently completing renovations on nine for the retailer's distribution facilities. Work was recently completed at Target distribution centers in Shafter, Calif.; Lake City, Fla.; Cedar Falls, Iowa; and Lugoff, S.C. Construction at these facilities, like all of the projects, focused on installing technology upgrades that would make the centers more efficient. In addition, the Shafter facility was expanded by approximately 250,000 square feet, and the Lugoff facility was expanded by 452,000 square feet. Construction is currently under way at distribution centers in Phoenix; Rialto Calif.; Pueblo, Colo.; Amsterdam, N.Y.; and Denton, Texas. Of the projects under construction, the Amsterdam facility is being expanded by approximately 410,000 square feet, and the Rialto facility is being expanded by 250,000 square feet. Ryan is also completing smaller projects at Targets across the country that are part of the company's strategy to remodel the stores' grocery sections. The highest numbers of these projects are taking place in the California and Twin Cities markets. “This last year has been a lot …
OAHU, HAWAII, AND INDIAN WELLS, CALIF. — Johnson Capital has arranged $48 million in non-recourse, permanent financing for two shopping centers owned by affiliates of Newport Beach, Calif.-based Stoneridge Capital Partners. The properties include Mililani Shopping Center in Oahu and The Villages at Indian Wells in Indian Wells. The loan carries a 10-year term and a fixed rate. Amos Smith and Ryan Chapman of the Irvine, Calif., office of Johnson Capital secured the funds in the transaction. In a statement, Smith says that both centers were well performing but the pending lease expirations of the both properties' anchor tenants made some potential lenders hesitant to provide the loan. However, Johnson Capital was able to secure financing through Hartford, Conn.-based Cornerstone Real Estate Advisors. Mililani Shopping Center is located at the intersection of Kuahelani Avenue and Kipapa Drive in Oahu's Mililani Town submarket. It was constructed in 1977 and totals 180,000 square feet. Major tenants at the fully occupied center include anchor Foodland, Ross Dress for Less and 24 Hour Fitness. The Village at Indian Wells is located at the intersection of Highway 111 and Cook Street within Southern California's Inland Empire. It was built in 1977 and contains 180,000 square …
ROSSLYN, VA. — Monday Properties will break ground next month for a $300 million speculative office building in the Washington, D.C., suburb of Rosslyn. The tower will contain 580,000 square feet and rise 35 stories — making it the tallest office tower in the Metro D.C. area. The project will be built at 1812 North Moore St. It is being constructed with sustainability in mind, and the finished building will save an estimated 24.5 percent in energy usage and 40 percent in water usage compared to a traditional building. Monday Properties is also enacting a construction waste diversion program, and the tower is being built with high-efficiency management and HVAC systems. It will be constructed in anticipating of receiving Platinum-level certification under the LEED – Core & Shell designation and Gold-level certification under the LEED – Neighborhood Development program. Monday Properties states that if the project receives LEED-Platinum certification, it will be the first office tower in Virginia to receive it. Doug Carter of DCS, Ltd. is designing the tower. Completion is anticipated for fall 2013. In a statement, Monday President and CEO Anthony Westreich said, “We completed our entitlement of 1812 North Moore Street with Arlington County nearly three …
WALTHAM, MASS. — Boston Properties has announced its intention to acquire Bay Colony Corporate Center in Waltham for approximately $185 million. Boston Properties is purchasing the campus from Prudential Financial, which took over the troubled asset from its previous owner in May. Bay Colony Corporate Center contains 980,000 square feet of Class A office space in four buildings. The 58-acre campus was constructed in phases between 1985 and 1998. It features views of the Boston skyline as well as Cambridge Reservoir. Earlier this year, the property was also certified LEED-Silver. Its primary tenant is United Health Care. Under the terms of the deal, Boston Properties would pay $41.1 million in cash and assume the property's $143.9 million mortgage. The loan carries a 6.53 percent fixed interest rate. It requires interest-only payments and has a balloon payment due at maturity in June 2012. The transaction is expected to close in the fourth quarter. Pending closing, Boston Properties could not comment on the deal. — Coleman Wood
SOUTH SAN FRANCISCO, CALIF. — BioMed Realty Trust has entered into a definitive agreement to acquire two life sciences campuses in South San Francisco for approximately $298 million. The portfolio contains approximately 489,000 square feet of rentable space and development rights for an additional 946,000 square feet. The first property is known as Science Center at Oyster Point. The recently developed campus includes two buildings containing approximately 205,000 square feet of office and laboratory space. The buildings are occupied by Elan Corp. under triple-net leases that expire in 2024 and 2025. The second property is Gateway Business Park, a six-building, approximately 284,000-square-foot park. Elan Corp. occupies approximately 215,000 square feet of the property. In addition, FedEx Corp. occupies 50,000 square feet, and Genentech, Inc. occupies the remaining 19,000 square feet. The leases expire between 2012 and 2014. As part of the deal, BioMed expects to assume a development agreement with the City of South San Francisco that will allow the campus to be expanded to 1.23 million square feet. If the properties close as intended, the San Francisco Bay Area would become BioMed's second largest market after Boston/Cambridge. Elan would also become the REIT's fourth largest tenant on a pro …
BENTONVILLE, ARK. — Wal-Mart Stores, Inc. has made a preliminary proposal to acquire South Africa-based retailer Massmart. Under the terms of the non-binding proposal, Wal-Mart Stores would acquire Massmart Holdings Ltd. for ZAR148 (approximately $21 US) per share. Headquartered in Johannesburg, Massmart has 288 stores in 14 countries in sub-Saharan Africa, with a majority of them located in South Africa. The retailer is the third largest distributor of consumer goods in Africa; the leading retailer of general merchandise, liquor and home improvement supplies; and the leading wholesaler of basic foods. It manages eight wholesale and retail chains that operate under a variety of names. Massmart currently has a market capitalization of ZAR 27.2 billion and 201.5 million ordinary shares, approximately 72 percent of which are foreign owned. The deal is subject to a number of conditions including due diligence and a period of reciprocal exclusivity granted by each company. — Coleman Wood
PENNSYLVANIA, MARYLAND AND VIRGINIA — A joint venture between Cedar Shopping Centers and RioCan Real Estate Investment Trust has entered into an agreement to acquire a five-property shopping center portfolio for approximately $92 million. The announcement follows on the heels of the venture's $53 million acquisition of Exeter Commons in Exeter Township, Pa., last month. Four of the five properties in the 678,000-square-foot portfolio are anchored by Giant Food Stores supermarkets. They include Gettysburg Marketplace, an 85,500-square-foot center located in Gettysburg, Pa.; York Marketplace, a 305,000-square-foot center located in York, Pa., that is co-anchored by Lowe's Home Improvement; Northland Center, a 108,000-square-foot center located in State College, Pa.; and Marlboro Crossroads, a 68,000-square-foot center located in Upper Marlboro, Md. The fifth center, the 111,000-square-foot Towne Crossings in Midlothian, Va., is co-anchored by Bed Bath & Beyond and Michaels. Overall occupancy at the portfolio was 96 percent at the time of closing. The joint venture plans to fund the purchase with a $52 million first-mortgage loan and $41 million in cash equity. The loan will carry a term of up to 10 years and an estimated interest rate of 5.5 percent. The ownership in this transaction is structured in the same …
DALLAS — Blockbuster has announced its plans to voluntarily enter into Chapter 11 bankruptcy as a way to clean up the struggling company's balance sheet. The recapitalization plan the company submitted to its senior noteholders aims to reduce its corporate debt from its present size of approximately $1 billion to $100 million or less. As part of the restructuring process Blockbuster has secured a $125 million commitment in new “debtor in possession” financing from its senior noteholders what will allow it to continue normal day-to-day operations. The senior noteholders comprise a group of bondholders that possess approximately 80.1 percent of the prinicple amount of Blockbuster's 11.75 percent senior secured notes. Upon its exit from bankruptcy, the company's senior secured notes will be exchanged for equity in the reorganized company. The capital drawn down from the $125 million commitment will convert to an exit loan facility, and a new $50 million exit revolving credit facility will be created. Finally, there will be no recovery from holders of Blockbuster's outstanding subordinated debt, preferred stock or common stock. The company did not disclose how it plans to reduce its debt, only stating that “the company will evaluate its U.S. store portfolio with a …
COLUMBUS, OHIO — Construction has begun for a $1 billion healthcare and research center at Ohio State University in Columbus. The Ohio State University Medical Center ProjectONE will be a 1 million-square-foot complex located on the school's south campus. The new facility will contain space for patient treatment and academic medical research. The focal point of the project will be a 19-story tower. Its top eight floors will contain the 276-bed Arthur G. James Cancer Hospital. Seven of the cancer hospital's floors will provide acute patient care, and one floor will be devoted to bone marrow transplant patients. The middle three floors of the tower will contain critical care facilities. Finally, the tower will contain the Richard J. Solove Research Institute. The complex will also contain a 144-bed critical care building along with integrated spaces for research, education and patient care. The main entry to the facility will feature a multi-story pedestrian concourse accessing the cancer center, critical care, and diagnostic and treatment facilities. The project will be seeking LEED-Silver certification. Completion for the project is expected in 2014. This expansion to Ohio State's healthcare options will serve an additional 10,000 inpatients and 300,000 ambulatory visits annually. It is estimated …