NEW YORK CITY — Meridian Capital Group LLC has arranged a $15 million loan for the refinancing of a multifamily property located on Maiden Lane in Manhattan on behalf of DSA Property Group. The five-year loan, provided by a regional balance sheet lender, features a fixed interest rate of 3 percent. Avi Weinstock and Josh Rhine of Meridian Capital arranged the loan. The 16-story property includes 66 units and 9,000 square feet of retail space. The loft-style apartments feature high ceilings and large windows. The property is located at 9-11 Maiden Lane.
BETHESDA, MD. — RLJ Lodging Trust (NYSE: RLJ) has closed on the sale of a portfolio of 11 hotels in Colorado, Florida, Indiana, Michigan, Nevada and Texas for approximately $85 million. The Bethesda-based trust sold the assets to Sage Hospitality, according to media reports. The estimated combined 2013 revenue per available room (RevPAR) for the portfolio was approximately $68. The sale of the portfolio will improve the company’s RevPAR and geographic profile, according to RLJ Lodging Trust. “This transaction enabled us to make significant progress on our capital recycling program,” says Thomas Baltimore Jr., president and CEO. “The sale of these assets are immediately accretive to our portfolio’s RevPAR and the net proceeds will be reinvested into higher-yielding hotels, such as our recently announced Hyatt deal. We are very pleased by the demand we saw while marketing these assets and we remain committed to expanding our capital recycling program.” The hotels include: · the 125-room Hyatt House Colorado Springs in Colorado Springs, Colo. · the 90-room Courtyard Denver Southwest Lakewood in Lakewood, Colo. · the 102-room Residence Inn Denver Southwest Lakewood in Lakewood, Colo. · the 126-room SpringHill Suites Gainesville in Gainesville, Fla. · the 95-room Residence Inn Indianapolis Airport …
NASHVILLE, TENN. AND SEATTLE, WASH. — Brookdale Senior Living Inc. (NYSE: BKD) and Emeritus Corp. (NYSE: ESC) have signed a definitive merger agreement in a transaction valued at $2.8 billion. The merger is expected to be complete in the third quarter of this year. The new company will be the only single-branded provider operating a nationwide network of senior living communities with fully integrated ancillary services across the care continuum, according to a press release issued jointly by Brookdale and Emeritus on Thursday. Services provided will include independent living, assisted living, dementia care, skilled nursing, outpatient therapy, home health and hospice care. “In an industry with very attractive long-term growth dynamics, this strategic merger creates the first national, predominantly private-pay-based, senior living solutions company,” says Andy Smith, Brookdale’s CEO. “This combination will improve our ability to deliver the best, high-quality solutions for the growing demographic of aging seniors and their families.” Once the merger is complete, a Brookdale community will be within 10 miles of 6.5 million seniors aged 80 or older. It will expand Brookdale’s unit capacity by more than two-thirds, totaling about 112,700 units in 1,161 communities in 46 states. It will also allow Brookdale to enter 10 …
OMAHA, NEB. — Sabra Health Care REIT Inc. (NASDAQ: SBRA) has acquired six Nebraska seniors housing facilities for $90 million. The transaction is a sale-leaseback with operator Nye Senior Services LLC, which has agreed to an initial 10-year term with four renewal options of five years each. The properties, all located within a 100-mile radius of Omaha, total 213 independent living units, 168 assisted living units and 292 skilled nursing beds. With this purchase, Irvine, Calif.-based Sabra continues to expand its presence in the middle of the country, having invested $230 million in Texas seniors housing facilities last summer. “This acquisition marks our first entry into Nebraska and aligns us with a terrific company that has had success in operating senior housing and skilled nursing facilities, a valuable skill set,” says Rick Matros, Sabra CEO and chairman. “The management team also has expansion plans on the docket for certain existing assets, which we anticipate financing.” Nye’s triple-net lease agreement includes annual rent escalations of 3 percent, resulting in annual lease revenues of $8 million and an initial yield on cash rent of 7.78 percent for Sabra. The REIT will pay an “earn-out” based on incremental portfolio value created through expansion …
SAN FRANCISCO — A partnership between Woodridge Capital Partners and funds managed by Oaktree Capital Management has acquired the historic Mark Hopkins Hotel at One Nob Hill in San Francisco for $120 million. Woodridge and Oaktree are purchasing the 383-room hotel from InterContinental Hotels Group (NYSE: IHG), which will continue to manage the hotel. The buyers plan to invest $20 million to renovate the guest rooms and common areas of the property. The Mark Hopkins Hotel opened on Dec. 4, 1926, on the site of railroad magnate Mark Hopkins’ 40-room mansion. Hopkins was one of the founders of the Central Pacific Railroad, which built the railway that linked the West Coast with the East Coast. The hotel has hosted U.S. presidents, world leaders, movie stars and business tycoons. “We are thrilled to add the Mark Hopkins San Francisco Hotel to our holdings further reinforcing our relationship with the great city of San Francisco,” says Michael Rosenfeld, CEO of Woodridge Capital Partners. “We are committed to enhancing the value of this prized asset.” Oaktree and Woodridge also own the historic Fairmont San Francisco across from the Mark Hopkins that they purchased in May 2012. With close to 1,000 rooms, the Mark …
The Raleigh industrial market dipped slightly in the third quarter of 2013 with negative net absorption, yet overall it improved from a year earlier, in part because of the general health of the North Carolina economy. Four factors are pushing the state’s economic recovery: a manufacturing revival, a construction surge, a boost of college graduates who are attracting knowledge-based industries and an influx of retirees, according to Dr. Michael L. Walden, a North Carolina State University professor and author of a report on the North Carolina economy that was published in the summer of 2013. The combination of factors led Dr. Walden to forecast that North Carolina’s Research Triangle, which includes Raleigh, would have an unemployment rate below 6 percent by the end of 2014. Ironically, some of the positive news for the state’s economy is putting pressure on the region’s industrial marketplace and driving these trends in Raleigh: • Net positive migration and population growth, year-after-year • The loss of industrial development opportunities to the homebuilding industry • Local pressure to prioritize live/work/play environments and de-emphasize industrial development • Constrained land supply • A lack of institutional grade space Consistently ranked by Forbes as one of the best places …
HAMPSTEAD, MD. — Men’s clothing retailer Jos. A. Bank Clothiers Inc. (Nasdaq: JOSB) has entered into a definitive agreement to acquire Everest Holdings LLC, the parent company of the Eddie Bauer brand, for $825 million. The deal will include $564 million in cash and about 4.7 million new shares of common stock of Jos. A. Bank. Upon the deal's closing, Golden Gate Capital, a private equity firm that owns Everest Holdings, will become a significant shareholder of Jos. A. Bank stock. “We have long admired the Eddie Bauer brand and its widespread appeal among those with active lifestyles and excitement about the outdoors, a large and growing customer base that overlaps significantly with ours,” says Robert Wildrick, chairman of Jos. A. Bank. “I look forward to working with the two exceptional CEOs who lead these companies — Neal Black at Jos. A. Bank and Mike Egeck at Eddie Bauer — to capitalize on the combined strengths of the businesses and the substantial synergies between them in order to drive significant near and long-term growth and value creation.” As part of the deal, Everest has the right to earn up to an additional $50 million in cash based on Eddie Bauer’s …
NEW YORK CITY — Meridian Capital Group LLC, a national commercial real estate finance and advisory firm, has arranged a $160 million CMBS loan to refinance a former nursing home on Third Avenue in New York City on behalf of The Chetrit Group. The 19-story building on the city's Upper East Side is now a student housing property. “Meridian was able to quickly procure this competitive financing for The Chetrit Group based on the strength of the sponsorship, the high-quality of the asset and a solid prior financing relationship with the lender,” says Ronnie Levine, managing director of Meridian Capital Group's New York City office. “Given the shortage of quality student housing stock in New York City, a property of this caliber will serve both our client and its inhabitants very well for years to come.” The 498-unit student housing property is located at 1760 Third Ave. and totals 247,600 square feet. The asset was formerly a nursing home that The Chetrit Group began converting in 2009. Tenants include Baruch College, Hunter College, LIM College and Educational Housing Services. Natixis Real Estate Capital LLC provided the five-year conduit financing, which features interest-only payments for the full term. Levine negotiated the …
BOSTON — Senior Housing Properties Trust (NYSE: SNH) has acquired the two-building headquarters of Vertex Pharmaceuticals in Boston for approximately $1.1 billion. The pair of 15-story towers includes biomedical research facilities, corporate office space, structured parking and street-level retail space for a total of 1.65 million square feet. The property, leased to Vertex for the next 15 years, officially opened last month. Located in Boston’s Seaport District, the facilities will consolidate approximately 1,300 employees from 10 Vertex offices in Cambridge, Mass. “The acquisition of this state-of-the-art property, which is ideally located in Boston’s fastest growing downtown submarket and one of the nation’s top investment markets, represents a unique opportunity to further diversify SNH’s portfolio and increase our exposure to the medical office building segment,” says David Hegarty, president and COO of Newton, Mass.-based SNH. The trust predicts that the transaction will be immediately accretive to normalized funds from operations (FFO) per share by 6 to 8 cents per year. The deal is expected to close in the first half of this year. “Post-closing, SNH will remain solidly positioned with a strong balance sheet and committed to its disciplined strategy of acquiring high-quality, premier properties that create significant value for SNH …
BETHESDA, MD. — RLJ Lodging Trust (NYSE: RLJ) has entered into a definitive purchase agreement with Hyatt Hotels Corp. (NYSE: H) to acquire a portfolio of 10 hotels totaling 1,560 rooms. A Hyatt affiliate will continue to manage the hotels under new management agreements. The portfolio, which is located primarily on the West Coast, is expected to be acquired for a total purchase price of approximately $313 million. RLJ, a publicly traded hotel real estate investment trust (REIT), intends to spend approximately $25 million in capital expenditures across the portfolio, the majority of which will be invested over the next 24 months. “We are excited about expanding our strategic relationship with Hyatt and increasing our presence on the West Coast,” says Thomas Baltimore, Jr., president and CEO of RLJ Lodging Trust. “Once completed, we will have acquired almost $900 million of assets since our IPO. This deal will be immediately accretive to the portfolio and will reinforce our stated goal of becoming the aggregator in this segment.” The portfolio consists of young, high-performing and well-situated properties, the majority of which were acquired by Hyatt in 2011. The hotels include: · The 142-room Hyatt House Cypress/Anaheim in Cypress, Calif. · The …