WASHINGTON, D.C. — In a deal expected to close during the first quarter of next year, Capital One Financial Corp. will acquire Chevy Chase Bank for $445 million in cash and $75 million in Capital One shares. The acquisition is expected to generate an internal rate of return for Capital One totaling more than 13 percent, a $125 million reduction in the company’s non-interest expenses and $225 million in merger and integration costs. Capital One will also assume a net credit mark of $1.75 billion for potential losses in the bank’s portfolio. At the time of the deal, Chevy Chase held $11 billion in deposits. “This transaction will enhance our strong deposit base, providing us with greater scope in the Mid-Atlantic markets. At a time when core funding is key, we see our deposit strength as an important element of our continued success,” Richard D. Fairbank, chairman and CEO of Capital One, said in a statement. Capital One, based in McLean, Va., holds $98.9 billion in deposits and $147.3 billion in managed loans as of September 30, 2008. Chevy Chase Bank offers construction and mini-permanent loans for commercial real estate projects. In November, Chevy Chase and a consortium of lenders …
WATERBURY, SOUTHINGTON AND WOLCOTT, CONN. — The joint venture of Urban Strategy America Fund and Beacon Communities Fund I Limited Partnership have acquired a senior housing portfolio in Connecticut from the Errichetti family. The acquisition amount was not disclosed. The 18 building, 404-unit portfolio consists of Exchange Place Towers, Flanders West, Countryside I and Countryside II. The properties are 99 percent leased. “Beacon Communities and New Boston’s USA Fund have a deep commitment to preserving affordable housing for low-income seniors and a track record of managing properties that provide quality housing over the long term,” says Rebecca Regan, president of Boston Community Capital’s Loan Fund. Exchange Place Towers is a 150-unit, 11-story apartment building in Waterbury. Flanders West is a 145-unit, mid-rise apartment community in Southington. Countryside I and II are 55- and 54-units, respectively, and feature townhouse-style apartment communities. “This purchase helps ensure the stability of 404 homes for senior citizens living on fixed incomes,” added Regan. “We’re proud of the role we could play in making this deal happen.”
JACKSONVILLE, FLA. — Harbor Group International has sold the 348,852-square-foot Wachovia Tower, a Class A office building located in downtown Jacksonville, to an undisclosed buyer for $51.4 million. Norfolk, Va.-based Harbor Group acquired the building in 2004 from Faison Enterprises for $38.3 million. T. Richard Litton, Jr., president of Harbor Group, says that 5 years is the typical amount of time the company holds onto assets of this size. When an offer for the building came along that met the company’s return expectations, Litton set the gears in motion. “We had good debt that was assumable by a purchaser,” he says, explaining why the large transaction was not overly affected by the economic downturn. “In other words, potential buyers did not have to worry about obtaining financing in the current, very difficult market.” Jeffrey R. Dunne and Steven P. Bardsley of CB Richard Ellis’s Stamford, Conn., office brokered the transaction. The 12-year-old property, which sits at 225 Water St., shares a lobby with a 353-room Omni Hotel. The tower is currently 98 percent occupied, with the majority of the space leased by Wachovia. Other tenants in the 22-story building include Foundation Financial Group, FPIC Insurance Group, CB Richard Ellis and …
CINCINNATI — Locally based Towne Properties has unveiled development plans for a $100 million mixed-use project that will be located in Cincinnati’s Calhoun Street Corridor along the southern border of the University of Cincinnati. Plans for Uptown Commons call for a mix of retail, apartments, hotels and office components spread across five development blocks. “The university is a campus with roughly 37,000 students and like many other universities around America, it is trying to strengthen or revitalize the edges of the campus to become even more competitive for the best students and staff,” explains Arn Bortz, a principle with Towne Properties. “That is the primary objective for this project.” Nevertheless, the new development was designed to be independent of the school. The University of Cincinnati financed the acquisition of the land for the project on behalf of a local neighborhood non-profit group, signifying a model for town-gown relations. From its park to its parking structures, Uptown Commons will offer a little bit of everything for a wide spectrum of the Cincinnati community. Because of the stagnant lending market, Towne Properties has decided to forego its search for financing until the first quarter of 2009, with an anticipated start date for …
BOSTON — Four projects, totaling more than $75 million in private investment, received approvals from the Boston Redevelopment Authority’s Board of Directors. The individual projects include: Seaport Square’s First Residential Building Known as Parcel A, this $40 million project is one of 20 parcels that comprise the Seaport Square Project, located on the South Boston Waterfront. The 54,400-square-foot, six-story building will include 34 residential units. It will feature one-, two-, and three-bedroom floor plans and ground-level retail space. The joint venture of MS Boston Seaport and Boston Residential Group is developing Parcel A. Construction is scheduled to begin second quarter 2009, with an estimated completion date in fourth quarter 2010. Fenway Residential Project This $20 million project will bring 45 residential units to the East Fenway neighborhood of Boston. The 47,000-square-foot building will consist of nine floors. Catamount Westland is developing the property, which will feature loft-style and two-bedroom units. Construction is scheduled to begin third quarter 2009, with an estimated completion date in first quarter 2011. Beacon Hill Project Originally designated as residential and retail space, developer Talanian Realty recently decided to scratch those plans in favor of a $9.5 million, five-story office building with ground-level retail space. Located …
DALLAS — Groundbreaking ceremonies were held earlier this month for Midtown Park, an 83-acre, mixed-use development located near Presbyterian Hospital on North Central Expressway in Dallas. The project is currently zoned for up to 3,800 residential units, 930,000 square feet of office space, and 90,000 square feet of retail space — but these numbers could be changed as space is subtracted from one use and added to another. Current plans for the residential component include townhomes, high-rise condos and a senior housing element. The office component will provide space for hospital-related tenants, as well as Class A users in the area. Plans for a hotel are also in the works. When coming up with the idea for Midtown Park, owner Valencia Capital Management wanted to create a community around the busy Presbyterian Hospital. “The reason we made this investment is because of the hospital,” says Tim Kaiser, principal of Valencia Capital Management. “That hospital generates a lot of jobs and a lot of economic activity in the area.” But the hospital is not the only draw in the area. Midtown Park’s trade area also is home to the headquarters of Texas Instruments, North Park Mall and Royals Oaks Country Club. …
CHICAGO — Kimberly-Clark Corp. has agreed to lease approximately 750,500 square feet within ProLogis Park 55, which is located southwest of Chicago in Romeoville. The transaction represents the largest industrial lease in the Chicago area so far this year. “The facility will be used to help us facilitate the implementation of our co-packing network redesign project, as well as consolidate overflow warehousing into fewer facilities that are more conveniently located in more efficient transportation and customer facing markets,” explains Joey Mooring of Kimberly-Clark Corp. This is the third lease agreement between Denver-based ProLogis and Dallas-based Kimberly-Clark, which now occupies approximately 1.6 million square feet within various ProLogis sites across America. The six-building ProLogis 55 industrial park consists of more than 3.1 million square feet of Class A distribution space. Sustainable features at the development include an energy-efficient lighting system with motion sensors, T5 lights and clerestory lighting. Additional terms of the lease were not disclosed. “The location was attractive due to it being adjacent to one of K-C's other consumer products distribution center’s,” says Mooring. “This provided Kimberly-Clark the capability to operate the two buildings as one, delivering more value and efficiency for the company.”
NEW YORK CITY — NYU Langone Medical Center has received two gifts totaling $260 million, which will go towards the expansion of the medical school campus and hospital. Approximately $150 million will go towards construction of a new patient pavilion, which will increase the clinical space by 50 percent. The remaining $110 million will be used to redesign Tisch Hospital, NYU’s flagship hospital, which was built in 1963. “NYU Langone is known for the humanity of its patient care and for the caliber of its physicians and scientists,” says Robert Grossman, M.D., newly appointed dean of the Medical Center. “As we build on that legacy and continue implementing our multi-year transformation, these gifts are a powerful endorsement of our efforts and our talented team of physicians, scientists, nurses, faculty and staff.” The two gifts bring the total philanthropic giving to NYU Langone this year to $506 million. Both the new patient pavilion and Tisch Hospital will be settings for state-of-the-art medicine, enhanced patient care and comfort, and expanded family services. “These gifts will help bring our dreams for NYU Langone closer to reality,” said Grossman.
OMAHA, NEB. — With its acquisition of two buildings measuring more than 300,000 square feet and plans to invest more than $100 million, Sunnyvale, Calif.-based Yahoo Inc. has quickly marked its territory in the state of Nebraska. The company purchased the 300,000-square-foot former Tender Heart Treasure building in La Vista, as well as 35,000 square feet of office space within the First National Bank Building in Omaha. Yahoo will use the buildings to house a Data Center and Customer Care Center. “It was kind of a perfect storm how it all came together,” explains Trenton Magid, president of Omaha-based Coldwell Banker Commercial World Group, who brokered the $14.8 million sale of the La Vista facility. “I put it on the market April 11, and they closed on it September 24.” As if Omaha’s central location in the United States was not enough to encourage Yahoo’s investment, the company was lured into the quick deal with many incentives introduced by the Nebraska Department of Economic Development. With its purchases, Yahoo became the first company to qualify for certain incentives as part of the new Nebraska Advantage Act. Yahoo must invest $100 million and employ at least 50 people. Upon doing so, …
NEW YORK — Circuit City has filed for bankruptcy protection today, a week after announcing it would close 155 stores and eliminate 17 percent of its U.S. workforce. The retailer and 17 affiliates filed for Chapter 11 protection from creditors with the U.S. bankruptcy court in Richmond, Va., where the company is based. According to the filing, Circuit City had $3.4 billion of assets and $2.32 billion of debts as of August 31, and more than 100,000 creditors. The company has lost money in five of the last six quarters. Shares of Circuit City last traded Friday at 25 cents and fell to 13 cents in pre-market trading.