"stock"

AUSTIN, TEXAS — A joint venture between Thomas Properties Group (NASDAQ: TPGI) and the California State Teacher’s Retirement System (CalSTRS) has acquired an eight-building office portfolio totaling 3 million square feet for $859 million. The portfolio includes Frost Bank Tower, 300 W. 6th St., One American Center, San Jacinto Center and One Congress Plaza in downtown Austin and Westech 360, Park Centre and Great Hills Plaza in suburban Austin. “In keeping with our strategic plan to acquire wholly owned or equally controlled properties that are accretive to our after-tax cash flow, we are pleased with the opportunity to increase our investment in Austin and more particularly, in a group of assets that we consider to be crown jewels,” says James Thomas, CEO and chairman of Thomas Properties Group. “We are very encouraged by the continued strength in the Austin market and the prospects for future growth.” The seller was TPG-Austin Portfolio Syndication, a venture between Lehman Brothers Holdings, an offshore sovereign wealth fund and a previous joint venture between TPG/CalSTRS. A subsidiary of Thomas Properties Group is the managing member with a 50 percent interest and CalSTRS owns the other 50 percent. Thomas Properties Group has also entered into an …

GREENWICH, CONN. — Greenwich-based Wheelock Street Capital has acquired 15 hotels in two separate, unrelated transactions totaling $221 million. Wheelock acquired a 12-hotel portfolio from affiliates of Inland American Real Estate Trust for approximately $116 million in a deal that closed last Thursday. The next day, Wheelock closed on the acquisition of three full-service hotels from Sunstone Hotel Investors (NYSE:SHO) for approximately $105 million. “We are delighted to be adding this collection of high-quality hotels to our portfolio,” says Jonathan Paul, managing partner at Wheelock Street Capital. For the 12-property Inland transaction, GE Capital, Franchise Finance provided newly originated senior financing. The rest was financed through a combination of assumed CMBS loans. CBRE Group and Maxim Hotel Brokerage represented Inland in the transaction. The 12-property portfolio is located primarily in the Southeast with other hotels located in Arizona, Texas and Illinois. Ten of the 12 hotels are branded under long-term license agreements with affiliates of Hilton and Marriott International. The other two hotels are licensed by affiliates of Choice Hotels and Intercontinental Hotels Group. McKibbon Hotel Management and the North Central Group will manage the 12-property portfolio. For the three-property portfolio sold by Sunstone, Wheelock assumed the hotels’ existing CMBS …

NEW YORK CITY — Strategic Hotels & Resorts (NYSE: BEE) has closed on the previously announced $362.3 million purchase of the 509-room Essex House Hotel, located in New York City. “We are proud to once again be involved with this marquee asset, especially given its attractive deal terms, unique and enviable Central Park South location and tremendous upside potential,” says Laurence Geller, president and CEO of Strategic Hotels. The company established a joint venture agreement with an affiliate of KSL Capital Partners to fund the equity portion of the transaction. Strategic Hotels will own 51 percent of the joint venture. The partnership closed on a $190 million first mortgage loan from Bank of America to fund the balance of the purchase price. Construction will begin immediately on property improvement plans to distinguish the property under the JW Marriott flag. Additionally, Marriott International will begin operating the hotel tomorrow, Sept. 18. “Consistent with our strategy of being an opportunistic investor, we moved quickly to take advantage of this highly compelling opportunity,” Geller says. “We are thrilled to have both another irreplaceable asset with Marriott International and to launch a new partnership with KSL Capital Parters, one of the industry’s most admired …

SAN DIEGO — Chesapeake Lodging Trust (NYSE:CHSP) has purchased the 429-room Hyatt Regency Mission Bay Spa and Marina, located at 1441 Quivira Road in San Diego, for $62 million. The hotel sits on a 19-acre, waterfront site that includes a 187-slip marina, which is currently 97 percent occupied. Chesapeake Lodging partially funded the purchase with available cash, while the balance was paid from its revolving credit facility. The purchase price equates to approximately $144,500 per key. “We are thrilled to expand our strategic relationship with Hyatt and purchase our second high-quality San Diego hotel, which is located directly on the bay with spectacular ocean views,” says James L. Francis, president and CEO of Chesapeake Lodging. “With the previous owner’s extensive renovation completed in 2007 and our planned $6 million softgood refresh, the Hyatt is the best positioned asset within the immediate marketplace.” The hotel features the full-service Blue Marble spa, the Red Marlin Restaurant Bar and Terrace with panoramic views, three lagoon-shaped pools each with its own 120-foot water slide, 37,000 square feet of meeting space and a water boat taxi service to a VIP entrance to Sea World. Most of the guestrooms average 400 square feet, while 137 of …

ESCONDIDO, CALIF. — Realty Income Corp. (NYSE: O) has signed an agreement to acquire all of the outstanding shares of American Realty Capital Trust (NASDAQ: ARCT), an owner and operator of single-tenant commercial properties, for $2.95 billion. The deal is expected to close in the fourth quarter of 2012 or in the first quarter of 2013. Realty Income will acquire 501 properties, bringing its total portfolio to more than 3,250 properties. Approximately 75 percent of the rental revenue at the properties stems from investment-grade tenants, including FedEx, Walgreens, CVS/pharmacy, the Government Services Administration, Dollar General, Express Scripts, PNC Bank and Whirlpool. “This acquisition comprehensively advances Realty Income’s strategic objectives of increasing its revenue generated by investment-grade tenants and further diversifying its portfolio outside of the retail industry,” says Tom Lewis, CEO of Escondido-based Realty Income. The acquisition will be financed by the buyer directly issuing $1.9 billion of its common stock to ARCT shareholders, the assumption of $526 million of debt and the immediate repayment of approximately $574 million of outstanding debt and transaction expenses. “This transaction will institutionalize the notion of durable, defensive dividends for our shareholders by allowing them to become owners on a very favorable basis of …

WALNUT CREEK, CALIF. — A joint venture between Equity Office Properties and Blackstone (NYSE: BX) has sold Treat Towers, two Class A office buildings located at 1255 and 1277 Treat Blvd. in Walnut Creek, for $118.5 million. MetLife (NYSE: MET) was the buyer. The LEED Gold certified buildings, which total 378,749 square feet, are 85 percent leased. Tenants include Paradigm Management Services, HQ Global Workplaces, Environmental Resources Management and Littler Mendelson. Amenities include a fitness center, conference center with a training room and board room, an ATM, banking facilities and a full service café. “Treat Towers is an irreplaceable asset of the highest quality in the East Bay, providing above standard construction and building amenities in one of the nation’s premier core office markets,” says Steven Golubchik, managing director of HFF. “The property offers its tenants a landmark location, providing ease of accessibility to the entire San Francisco Bay Area.” Golubchik, along with John Pelusi, Michael Leggett and Gerry Rohm of HFF, represented the seller in the transaction. Blackstone’s stock price closed at $13.18 per share on Sept. 5, up from $12.04 per share a year earlier. MetLife’s stock price closed at $34.01 per share, up from $28.87 per share …