NEW YORK CITY — New York City's Human Resources Administration (HRA) has signed a 20-year lease for 200,000 square feet at The BankNote Building in the Hunts Point section of the Bronx. HRA will occupy three floors of the 400,000-square-foot property, once the location of American Bank Note Co. printing presses that printed currency, postage stamps, war bonds and stock certificates for nearly 76 years. The building owner, Taconic Investment Partners, secured a $17.9 million tenant improvement loan for the HRA build-out, which was provided by Lance Capital LLC.
BOSTON — Mack-Cali Realty Corp. (NYSE: CLI), an Edison, N.J.-based REIT, has acquired Alterra at Overlook Ridge IA for approximately $61.3 million and Alterra at Overlook Ridge IB for approximately $88.7 million. The two properties are luxury multifamily communities containing 722 units in the master-planned community of Overlook Ridge in Revere in metro Boston. A subsidiary of Roseland, which Mack-Cali recently acquired, developed Alterra IA in 2004 and Alterra IB in 2008. The subsidiary has managed the properties since completion. “The acquisition of Alterra perfectly complements our recent acquisition of the real estate development and management businesses of Roseland and its imminent development interests at Overlook Ridge,” says Mitchell Hersh, president and CEO of Mack-Cali. “We expect to place mortgage financing on the property that will provide a cash-on-cash yield in excess of 9 percent.” A joint venture including Prudential Insurance Co. of America sold the two properties, which are 97.2 percent occupied. Mack-Cali expects the transaction to close in early April when the loan that encumbers the property opens for prepayment. The two Class A communities feature heated outdoor pools, fitness centers, lounges, business centers, cinema screening rooms and direct-access parking garages. The communities are located five miles north …
SCOTTSDALE, ARIZ. — In a blockbuster transaction, Spirit Realty Capital Inc. (NYSE: SRC) and Cole Credit Property Trust II (CCPT II) have entered into a merger agreement that will create a company with 2,012 properties in 48 states. The new entity will become the second largest publicly traded triple-net-lease real estate investment trust (REIT) with a pro forma enterprise value of approximately $7.1 billion. The combined company will retain the Spirit Realty name and trade on the New York Stock Exchange under the ticker symbol “SRC.” The current management team of Spirit Realty will lead the combined company. The deal is expected to close in the third quarter of this year. As a result of the merger, the company will have a more broadly diversified portfolio of real estate assets and enhanced access to capital. Scottsdale, Ariz.-based Spirit Realty’s portfolio consists of single-tenant, triple-net-lease properties in the retail and distribution industries. CCPT II primarily invests primarily in freestanding, single-tenant buildings that are typically necessity retailers including drugstores, family restaurants and home improvement stores. “This merger significantly accelerates Spirit Realty’s business strategy and better positions us to deliver long-term value to our shareholders,” says Thomas Nolan, chairman and CEO of Spirit …
NEW YORK — Sony Corp. of America, a subsidiary of Sony Corp. (NYSE:SNE), has reached an agreement to sell its U.S. headquarters, located at 550 Madison Ave. in New York City, for $1.1 billion. The sale is to a consortium led by New York-based The Chetrit Group, owner of a bevy of commercial properties. The deal is expected to close in March. The Tokyo-based electronics maker expects the sale of the property to generate net cash proceeds of about $770 million after repaying debt tied to the building and other transaction costs. The company will also realize a gain of $685 million on the sale, which will be recorded as operating income. The company and other units of the Japanese parent, including Sony Music Entertainment, will remain in the building for up to three years. “Given the opportunities and challenges in the current economic and real estate landscape, selling 550 Madison now is a timely and logical strategic move,” Nicole Seligman, president of Sony Corp. of America, told Bloomberg in a statement. “Regarding our new headquarters, we continue to look at a number of spaces in Manhattan, but have not yet made a decision about where to lease.” The company …
FLORIDA AND ALABAMA — CBRE Capital Markets has arranged approximately $60.1 million in financing for the acquisition of seven shopping centers in Florida and the refinance of a 135,000-square-foot Lowe’s Home Improvement in Opelika, Ala. on behalf of H&R REIT. The Florida properties include: The Shops at Mission Trace in St. Augustine, Fla. Corridors at Ponte Vedra in Ponte Vedra Beach, Fla. First Merritt Center in Merritt Island, Fla. Mandarin Oaks in Jacksonville, Fla. Publix at Holly Hill in Daytona, Fla. Publix at Summer Bay in Clermont, Fla. Regency Village in Orlando, Fla. The purchase price for the seven Florida shopping centers totals $80.4 million. Six of the seven shopping centers are anchored by Publix. Corridors at Ponte Vedra is anchored by Fresh Market. H&R REIT is a Toronto Stock Exchange listed, open-ended real estate investment trust.
AUSTIN, TEXAS — CBRE Austin has arranged the sale of a 241,564-square-foot, single-tenant industrial property, located at 4501 Burleson Road in Austin. The triple-net leased asset is occupied by Stock Building Supply. The property is located on a 30.39-acre lot and includes an office building, two manufacturing warehouses and three bulk warehouses. Walter Saad and Cathy Nabours of CBRE's Private Capital Group in Austin, along with Greg Marberry of CBRE's Industrial Group in Austin, represented the seller, Calcasieu Real Estate Holdings, in the transaction. Austin-based Capital Commercial Investments Inc. purchased the property.
SEATTLE — Dexter Station, a 340,000-square-foot office building, is set to begin construction in Seattle’s South Lake Union district. It will be located at 1101 Dexter Ave. Construction will commence Feb. 1, and is scheduled for completion in the first quarter of 2015. It is being developed by a joint venture between Capstone Partners and Stockbridge Capital Group. The project, which is aiming for LEED-Silver certification, will be the first speculative office development in the Puget Sound region since 2008. Dexter Station will be built by JTM Construction and designed by LMN Architects and CPL. Stuart Williams, Laura Ford and Joe Gowan of Jones Lang LaSalle will serve as the property’s leasing agents.
SEATTLE — Dexter Station, a 340,000-square-foot office building, is set to begin construction in Seattle’s South Lake Union district. It will be located at 1101 Dexter Ave. Construction will commence Feb. 1, and is scheduled for completion in the first quarter of 2015. It is being developed by a joint venture between Capstone Partners and Stockbridge Capital Group. The project, which is aiming for LEED-Silver certification, will be the first speculative office development in the Puget Sound region since 2008. Dexter Station will be built by JTM Construction and designed by LMN Architects and CPL. Stuart Williams, Laura Ford and Joe Gowan of Jones Lang LaSalle will serve as the property’s leasing agents.
NEW YORK CITY — Brookfield Office Properties Inc. (NYSE: BPO) has kicked off construction of the platform for the $4.5 billion Manhattan West Development site on Ninth Avenue between West 31st and West 33rd streets and Dyer Avenue in Manhattan. Manhattan West will be a 5 million-square-foot, mixed-use development including two 60-story LEED Gold office towers, a residential tower, large public gathering spaces, shops and restaurants. The platform will consist of a series of 16 bridges and will complete the surface on which the entire development will sit. The total site is five acres, of which the platform will occupy 60 percent. Construction of the platform is slated for completion in 2014, and the Manhattan West project is scheduled to receive tenants in 2016. “Brookfield is thrilled to have kicked off construction on our premier development on the west side of Manhattan,” says Dennis Friedrich, CEO of Brookfield Office Properties. “With today’s groundbreaking, we’re taking a major step forward in the transformation and rebirth of the far west side of Manhattan,” continues New York City Mayor Michael Bloomberg. The platform will be located above a rail yard and will be launched with $340 million of financing in place. A bank …
IRVING, ILL. — Hostess Brands Inc., the bankrupt maker of Twinkies, has hired privately held Hilco to help sell off its real estate and other assets as the Irving-based company liquidates in bankruptcy. Federal bankruptcy judge Robert Drain approved the appointment of Chicago-based Hilco to sell all real estate, machinery, equipment and rolling stock assets that remain in the company’s estate following court supervised auctions conducted by investment bank Perella Weinberg Partners. The auctions are expected to be completed this spring.