CHICAGO — General Growth Properties (GGP) is one step closer to emerging from Chapter 11 bankruptcy, which it entered into last summer. The Teacher Retirement System (TRS) of Texas has agreed to invest $500 million in equity in GGP, which will help the troubled company fulfill its debt obligations. At the same time, GGP has filed its proposed plan for reorganization with the U.S. Bankruptcy Court for the Southern District of New York. The company plans to emerge from bankruptcy in October. At this time, it will split into two publicly traded companies, New GGP and Spinco. In exchange for its investment, TRS of Texas will receive equity in New GGP at $10.25 per share. It will not hold a stake in Spinco. The equity investment is one of several conditions of GGP's emergence from bankruptcy. Since last December, the company has restructured approximately $15 billion in project-level debt. Under its reorganization plan, GGP will satisfy its debt claims in full and recapitalize with $8.55 billion in new capital. This funding is being provided by Brookfield Asset Management, Fairholme Funds and Pershing Square Capital Management. It is broken down as follows: • $6.3 billion of new equity at $10 per …
CHICAGO — Jones Lang LaSalle (JLL) has formed a long-term partnership with General Growth Properties (GGP), which is in ongoing efforts to emerge from Chapter 11 bankruptcy. The central act of the partnership ship is JLL acquiring the management and leasing responsibilities of GGP's third-party management division. The division's portfolio comprises 18 shopping centers totaling more than 11 million square feet of space. The properties include: Burbank Town Center (Burbank, Calif.); Palladio at Broadstone (Folsom, Calif.); The Shops at Tanforan (San Bruno, Calif.); Festival Bay Mall (Orlando, Fla.); University Mall (Tampa, Fla.); Queen Ka'ahumanu Center (Kahului, Hawaii); Windward Mall (Kaneohe, Hawaii). Kings' Shops (Waikoloa, Hawaii); Westdale Mall (Cedar Rapids, Iowa); Alexandria Mall (Alexandria, La.); Laurel Commons (Laurel, Md.); Towson Commons (Towson, Md.); Swansea Mall (Swansea, Mass.); Branson Landing (Branson, Mo.); St. Lawrence Centre (Massena, N.Y.); Cherokee Square Shopping Center (Tullahoma, Tenn.); Northgate Mall (Tullahoma, Tenn.); The Shops at Georgetown Park (Washington, D.C.). In addition, approximately 200 GGP employees comprising the portfolio's management teams along with 30 corporate employees in the management division will become employees of JLL. Three GGP executives will become senior vice presidents at JLL. They include Mark Hunter, formerly senior vice president of third-party management; Donn Fuller, …
WASHINGTON, D.C. — CWCapital has secured a $151 million construction loan for a new multifamily project in Washington, D.C. The loan, which was financed through the Federal Housing Administration (FHA), includes a 30-month construction term and a 40-year, fully-amortizing term thereafter. Andrea McClure of CWCapital structured and originated the loan. Englewood, Colo.-based Archstone will use the proceeds to develop 1st & M, a 469-unit, Class A property located just north of Union Station and the U.S. Capitol. Community amenities will include a rooftop area with a heated pool and a spa as well as a 16,000-square-foot courtyard with trees and reflecting pools. Other amenities include a resident library and sound-proof activity studios. Completion for the project is expected in 2013. Archstone will also market and manage the property. “With strong multifamily demand in select markets such as Washington, D.C., the FHA is providing critical new construction capital to borrowers — and helping to create new jobs,” said Michael Berman, president and CEO of CWCapital, in a statement. “While many banks are on the sidelines or have restricted credit criteria, FHA is performing an important counter-cyclical role and attracting high-quality sponsors with high-quality projects who have rarely, of ever, accessed this …
NEW YORK CITY — In one of the largest CMBS deals of the past two years, a joint venture between The Durst Organization and Bank of America has secured $1.3 billion for the refinancing of Bank of America Tower at One Bryant Park. The loan consists of $650 million in CMBS funding and $650 million in Liberty Bonds. The CMBS portion carries a 10-year term, and the Liberty Bonds carry a 30-year term. Bank of America and JP Morgan were the underwriters. Bank of America Tower was constructed in 2008 in Midtown Manhattan. It contains 2.1 million square feet of office space over 52 stories. In May, the building received LEED-Platinum certification from the U.S. Green Building Council — making it the first skyscraper to earn the highest designation of the LEED program. At the close of financing, the tower was 98 percent occupied. Bank of America is the primary tenant and houses its New York City operations in the building. In a statement, Jonathan Durst, president of The Durst Organization, said, “One Bryant Park has proven to be trailblazer. It was the first LEED-Platinum offfice tower in the United States. It was the largest skyscraper designed and built after …
CAPE CANAVERAL, FLA. — The groundbreaking has occurred for a new 199-acre high-tech office park at the entrance to Kennedy Space Center in Cape Canaveral. Exploration Park is being developed in two phases by Columbus, Ohio-based The Pizzutti Companies. The first phase will comprise 60 acres of the project. Once built out, it could contain up to eight buildings with up to 315,000 square feet of office, R&D, laboratory, academic and flexible high-bay space. This phase is projected to be built out over the next 5 to 8 years, with current construction consisting of the installation of public infrastructure, which will be complete next September. Phase II of construction will consist of the long-term development of the other 139 acres. “What's unique about this project is that it is on Space Center property but is just outside of the security gates,” says Tom Harmer, senior vice president with Pizzutti. He adds that this allows more flexibility for tenants, since you have access to the Space Center but do not have to go through the heavy security associated with being inside the gates. The existing Space Life Sciences Lab will serve as the project's de facto first building. The 100,000-square-foot building …
ATLANTA — Bethesda, Md.-based Pebblebrook Hotel Trust has acquired the InterContinental Buckhead Atlanta hotel for $105 million. The five-diamond, luxury hotel is located within Atlanta's Buckhead submarket. It totals 24 stories and contains 422 rooms, including 21 suites and 93 rooms reserved for Club InterContinental members. The hotel features 31,000 square feet of meeting space — more than any other hotel in the submarket — including a 12,000-square-foot ballroom. The indoor meeting space is complemented by a 24,000-square-foot outdoor garden and meeting area. Amenities include a 5,000-square-foot fitness center and spa, a business center, and an outdoor pool with poolside bar service. Finally, the hotel contains Au Pied de Cochon, a French-style brasserie, as well as XO Bar, a cognac bar. “We are extremely pleased to acquire one of Buckhead's leading hotels in one of the nation's fastest growing metropolitan areas,” said Jon Bortz, the head of Pebblebrook, in a statement. “We view the InterContinental Buckhead as a strategic opportunity to invest in a high-quality hotel with a premier brand and operating company in one of the most active and affluent locations in the United States.” The InterContinental Buckhead Atlanta was developed in 2004 by locally based InterContinental Hotels Group …
LOS ANGELES — Legacy Partners Residential has completed construction of 1600 Vine, a $264 million, transit-oriented, mixed-use project located in Los Angeles. The 12-story project is centrally located at the corner of Hollywood Boulevard and Vine Street in Hollywood. It primarily consists of 375 apartments in a mix of 297 market-rate units and 78 affordable units. The residences include studios; one- and two-bedroom flats; and one-, two- and three-bedroom townhomes. Units range in size from 612 to 3,183 square feet, and rents range from $2,375 to $11,125 per month. Amenities for 1600 Vine include a residents lounge with LCD televisions, billiards tables, a bar and a catering kitchen. The building's sixth floor contains a pool, a spa, an outdoor fireplace and gas barbecues. An 11th floor rooftop terrace contains an outdoor fireplace, TVs, lounges and a zen garden. Additional amenities include a fitness center a conference room and a business center. In addition to the multifamily space, 1600 Vine contains 32,595 square feet of ground-floor retail space. Tenants include Trader Joe's, Wells Fargo, Café Entourage and Bubbles. There is a 215-space public parking lot that will provide spaces for both the adjacent W Hotel Hollywood & Residences as well as …
LEXINGTON, MASS. — Biopharmaceutical company Shire plc has acquired Lexington Technology Park for $201 million. The company was already the primary tenant of the office/laboratory complex, originally moving its Human Genetics Therapies into the park in 2007. It previously leased 92 percent of the park's existing space. It also has a 156,390-square-foot, build-to-suit office building under construction and already owns a manufacturing facility within the park's grounds. Once the build-to-suit is complete, Lexington Technology Park will comprise four office/laboratory buildings totaling 435,000 square feet. The $201 million purchase price includes $165 million for the existing park and $36 million for the building under construction. The seller was Patriot Partners Lexington LLC, which is a joint venture between O'Connor Capital Partners, Mohawk Partners and Atlantic Management. Robert Griffin, Jr., and Edward Maher, Jr., of Cushman & Wakefield's Capital Markets Group partnered with Mark Winters, also of Cushman & Wakefield, to represent the seller. Robert Richards of Richards Barry Joyce & Partners represented the buyer. Lexington Technology Park is located on 96 acres of land near the interchange of Interstate 95 and Concord Turnpike in Lexington. The park previously served as the headquarters for Raytheon Corp. for more than four decades before …
NEW LONDON, CONN. — Groton, Conn.-based Electric Boat has ended its search for more office space with the announcement that it has reached an agreement to purchase the former Pfizer campus in New London. The submarine builder, which is a subsidiary of Falls Church, Va.-based General Dynamics, plans to use the campus for research and development. Earlier this year, Electric Boat had announced that it was looking for additional space to accommodate growth in its engineering sector. Pfizer had already announced its plans to vacate its global research headquarters, and the campus, which was already used for research and development, fit in perfectly with Electric Boat's needs. The property spans 33 acres at 50 Pequoit Ave. It contains three connected office towers totaling 700,000 square feet of office space. In addition, the campus contains 1,800 surface-level and garage parking spaces as well as a child care center and visitor control center situated outside of the secure portion of the complex. Electric Boat will immediately begin an 18-month phased occupancy that will be done in concert with Pfizer's relocation. Engineers working on the U.S. Navy's next-generation submarine will take occupancy of two floors of Tower C in July. As more Electric …
CHICAGO — Two Chicago-based healthcare real estate companies have joined. The Ventas has entered into an agreement to acquire Lillibridge Healthcare Services and its real estate interests in 95 medical office buildings and ambulatory care facilities. Following the closing of the transaction, which is expected in the third quarter, Lillibridge will operate as a wholly owned subsidiary of Ventas. “Now, more than ever, hospitals and other healthcare providers will demand real estate partners that can quickly and reliably deploy cost-effective capital, facility development and property management solutions across the entire continuum of care,” said Todd Lillibridge, chairman and CEO of Lillibridge Healthcare, in a statement. The Lillibridge acquisition will greatly expand Ventas' operations and real estate holdings. The company will now have more than 250 employees. In addition, it will control 154 medical office buildings and outpatient facilities totaling 8.4 million square feet across 20 states. It also holds 244 senior housing facilities, 187 skilled nursing facilities and 40 hospitals. “Ventas has been the best performing publicly traded REIT over the past 10 years,” said Debra Cafaro, president and CEO of Ventas. “The acquisition of Lilllibridge is a major step in executing our strategic growth and diversification plan that will …