the Editors of Commercial Property Executive
MPT to Nab Trio of New Hospitals for $60M
Medical Properties Trust Inc. (MPT) has provided a $60 million financing package for three Southern California hospital campuses acquired recently by Prime Healthcare Services Inc. of Victorville, Calif. Prime acquires distressed hospitals and turns them around. The financing package provided for 100 percent of the price of the hospitals. It is expected that the transaction will be converted into a sale-leaseback within 30 days. Under the terms of that transaction, MPT will take back the loans, allocate the $60 million among the three facilities and issue triple net leases on each–calling for rents equivalent to 10.5 percent of the $60…
GenCorp Gets Approval for Sacramento Mixed-Use
Sacramento County has approved plans for a mixed-use developmental project by GenCorp Inc. GenCorp’s plan for the site includes 4,883 residential units of varying sizes to go along with 4.2 million square feet of commercial and office space. The project will be situated on about 1,400 acres in the eastern part of Sacramento County, and is a part of GenCorp’s broader vision for its 600 acres of excess land in the area. Included in plans for the development are 480 acres of open space and parks. The plan will also incorporate new green technologies in the construction and operation of…
Plans Unveiled for 9,300-Unit Long Island Mixed-Use
Gerald Wolkoff, principal of Heartland Development, and his son, David, have devised a phased plan to complete a 9,300-unit project on the 462-acres of the former Pilgrim State Psychiatric Hospital in Brentwood, N.Y., on Long Island.In a recent meeting with the Long Island Regional Board, the father and son pair proposed that they intend to build the mixed-use development in a series of three phases. This phased idea is an updated version of a plan that Gerald Wolkoff initially revealed in 2003, two years after he purchased the Pilgrim site from the state for $21 million. The initial phase of…
Abu Dhabi Fund Acquires Chrysler Building
Another iconic New York skyscraper has been snapped up by a Middle Eastern sovereign wealth fund. The Chrysler building was acquired by the Abu Dhabi Investment Council for an undisclosed price yesterday, only one month after Dubai-based Meraas Capital L.L.C. acquired the General Motors Building for $2.8 billion in a joint venture with Boston Properties Inc. and Goldman Sachs Group. Abu Dhabi Investment Council was set to pay $800 million for the 1.2 million-square-foot building at 405 Lexington Ave., a source told Bloomberg News, which broke the story. The New York Post also reported that the fund would take a…
First Industrial Makes Move Into France, Germany
First Industrial Realty Trust has increased its European footprint, opening new offices in Paris, France and Düsseldorf, Germany, the company announced today. The company plans to invest in these countries’ properties through its balance sheet and its $475 million FirstCal Industrial Europe joint venture with the California State Teachers’ Retirement System (CalSTRS), the second largest U.S. public pension fund. First Industrial is focusing on value-add acquisitions, developments and redevelopments through its balance sheet and joint venture, and will also focus on The Netherlands and Belgium, as well. The company opened offices in those countries last year. “These are both large…
Trikona Inks Deal for M-F Redevelopment in Mumbai
As part of its commitment, announced in late 2006, to invest more than $1 billion in slum redevelopment in Mumbai, India, Trikona Capital Ltd. of New York City has signed up for a 4-acre, $40 million middle-class housing project in Bandra, a residential area adjacent to Mumbai’s Central Business District. The deal is a co-investment with SachsenFonds, a German fund manager, and the developer is Keystone Constructions Pte. Ltd. Though Trikona has more than 15 urban redevelopment projects in Mumbai totaling 20 million square feet, this is its first investment that involves the renovation of middle-class housing. According to a…
ING Clarion Goes on Shopping Spree
In the wake of the acquisition of retail property in Denver, real estate investment advisory firm ING Clarion Partners L.L.C. has purchased more property in Denver–an office complex–as well as another office property in Santa Clara, Calif. All three of the acquisitions, which the company characterizes as value-add plays, were completed with separate joint venture partners. In Denver, ING Clarion partnered with Schnitzer West, a Seattle-based operating company, in the purchase of two office buildings totaling about 262,000 square feet. Currently known as 44 Cook and 55 Madison, the JV plans to renovate the two adjacent Cherry Creek-area buildings. The…
Healthcare Firm Commences Work on 320,000SF San Diego HQ
Pharmacy benefit management firm MedImpact has just broken ground on its new corporate headquarters campus in San Diego. The 320,000-square-foot complex will be located in the city’s Scripps Ranch submarket. MedImpact’s new home will sit near the intersection of I-15 and Mercy Rd., just two miles north of its current location. Consisting of two multi-story structures, the development will be designed to achieve LEED Silver certification. In the currently challenging economy, many companies are freeing up capital through real estate sale-leaseback deals. However, some firms are moving forward with the development of their own headquarters properties either for investment purposes,…
NetLease Q & A: Savillis’ Oppenheim Says Seniors Housing Has Special Cases
CPN NetLease recently had a talk with Meredith Oppenheim, senior vice president of Savillis, the New York branch of London-based global real estate firm Savills Plc, about how net lease as it applies to seniors housing. Oppenheim, a specialist in seniors housing, assembles capital-operator-developer teams to launch new projects or turn around existing properties. She’s also an advisor to investors in the seniors housing space. CPN: How is the net lease structure used in seniors housing? Oppenheim: Net lease as it applies to seniors housing shares basic similarities with other property types, but there are differences. In seniors housing as…
Landmark Boston, NYC Properties Acquire Financing
While deals may be slowing down, Holliday Fenoglio Fowler L.P. has arranged two deals–one for $85 million for the Boston Harbor Garage in Boston and one for $90 million refinancing for 401 West 14th St., a 62,000-square-foot retail and office building in Manhattan’s Meatpacking District. The Boston office of HFF handled the Boston Harbor deal. The 1,380-space parking garage with 30,000 square feet of street-level retail is located at 70 East India Road in downtown Boston, adjacent to the New England Aquarium and along the Rose Kennedy Greenway, a recently created boulevard with a series of parks linking several urban…