the Editors of Commercial Property Executive
CBRE Capital Markets to Act as Agent for Duke’s $800M Industrial JV
Duke Realty Corp., with CBRE Capital Markets Group as its new equity partner, plans to accumulate all build-to-suits projects into a joint venture with CB Richard Ellis Inc., the companies said today. The new venture will include the acquisition of up to $800 million of newly developed bulk industrial build-to-suit projects over the next three years. The new partnership allows Duke Realty to recycle capital while maintaining relationships with key national tenants.CBRE Capital Markets served as Duke Realty’s equity placement agent in the transaction. The initial portfolio included six properties, totaling approximately 5.2 million square feet of industrial space with…
Brocade Buys San Jose Land for New HQ in $223M Deal
Brocade Communications, a Silicon Valley network communications manufacturer, has bought three parcels of land in San Jose, Calif., where it plans to build a new headquarters in a sale and development deal worth at least $223 million. The San Jose-based company paid MFP/Hunter @First Office Partners L.L.C. $50.9 million for the unimproved building parcels, according to a filing the Securities and Exchange Commission. As part of the transaction, Brocade hired MFP/Hunter@First Development Partners L.L.C.–a subsidiary of the seller–to develop 562,000 square feet of office space in the three buildings and a parking garage. The filing states Brocade will pay the…
Kimpton to Co-Develop Another Hotel in Chicago
Kimpton Hospitality Partners II, which recently closed a $246 million equity fund, is investing in the development of a new property in Chicago, the Hotel Palomar. Scheduled to open in the fall of 2009, the 35-story, mixed-use tower will be located at 505 North State St., two blocks west of the North Michigan Ave. retail district. Plans for the hotel portion of the development call for 261 rooms, including 20 suites, with one large presidential suite, and a street-level restaurant and bar at the corner of State and Illinois streets. Above the hotel will be about 121 corporate housing units…
GE Real Estate Joins BNP Paribas to Grow $1.5B French Hotel Fund
GE Real Estate Europe has jumped aboard the Capital France Hotel fund, joining BNP Paribas Assurance as a founding limited partner. The two companies intend to grow CFH’s assets under management to $1.5 billion by the end of 2010 by investing in hotels across the Euro zone, Scandinavia and Central and Eastern Europe. Capital France Hotel is managed by Algonquin Asset Management France. It currently owns and manages a portfolio of nine three- and four-start hotels in urban locations under Rezidor brands The fund plans to focus on mature markets, especially Germany, France and Space, but will also keep a…
$110M Financing Deal Closes for Louisville Office Portfolio
A financing package valued at $109.5 million has been put in place for a 13-property office portfolio in metropolitan Louisville, Ky. CBRE Capital Markets orchestrated the deal on behalf of borrower Fenley Real Estate. Fenley was able to walk away with first mortgage financing in the form of an on-book loan at a three-year fixed-rate from GE Real Estate. Encompassing 923,000 square feet of Class A office space, the portfolio features 11 buildings in suburban Louisville and an additional two buildings in the city’s Central Business District. A total of 100 tenants–some with Fortune 500 status–make their home at the…
336,000SF San Francisco Office Building Makes Debut
Construction of Foundry Square I, a 336,000-square-foot office building in Downtown San Francisco, has recently reached completion. Developed by Glenborough L.L.C., the building will become the global headquarters of Barclays Global Investors. Foundry Square I carries the address of 400 Howard St. and sits across from Transbay Terminal in the city’s South of Market Financial District. Webcor Builders served as the general contractor on the project and Studio Architectures designed the 10-story structure, which also features about 10,000 square feet of ground-level retail space. Barclays pre-leased the entire property in 2005. “We’re pleased to have Barclays take the whole building,…
Trump Will Sell Casino for $316M
Coastal Marina, an affiliate company of privately-held Coastal Development, announced that it has come to an agreement with Trump Entertainment Resorts and will purchase the 14-acre Trump Marina Hotel Casino property for $316 million. This agreement includes a reportedly non-returnable deposit of $15 million on the part of the buyer, a large incentive to complete the deal. Coastal Development has plans, after the closing is final, to retrofit the entire resort and rebrand it as Margaritaville. The Trump Marina Hotel Casino property now includes a 27-story hotel building with some 700 guest rooms, about 58,000 square feet of convention, ballroom…
Dweck Closes Purchase of 2 D.C. Offices with $241M Loan
Ownership of an historic office building and a new office project in Washington, D.C., has officially changed hands, with Dweck Properties’ acquisition of the two assets from The JBG Cos. A $241.1 million financing package paved the way for Dweck’s reported $375 million purchase of the properties, which will account for a total of approximately 461,000 square feet of premier office space. Holliday Fenoglio Fowler L.P. played a significant role in the trade. The real estate services firm orchestrated the disposition of JBG’s properties at 51 Louisiana Ave. and 300 New Jersey Ave. on Capitol Hill, and arranged for Dweck…
McSam Plans Hotel on Lower Manhattan Parcels
The McSam Hotel Group is betting that it’s recent $56 million acquisition of two properties in Lower Manhattan–and its plans to develop a new hotel on the sites–will capitalize on a growing demand for hotel space in the area.McSam purchased 6 Water St and the adjacent 32-38 Pearl St. in February, according to the New York Post. The 8,300-square-foot site fronts on three streets and provides 125,000 build able square feet. According to Alan Miller, a senior director and principal with Eastern Consolidated, which brokered the transaction, the $56 million purchase price translates to $448 per square foot of buildable…
Saito to Continue Mitsui Fudosan’s U.S. Expansion as New CEO
Hiroki Saito, who played a key role in establishing Japan’s first REIT as an executive with Mitsui Fudosan Co., has been named CEO of Mitsui Fudosan America as the subsidiary continues with its expansion efforts in the United States. Saito, with more than 20 years of commercial real estate leasing and investment experience, takes over from Kosei Murakamo, who has been promoted to head of international operations at corporate headquarters in Japan. Saito (pictured) relocates from Tokyo to the company’s U.S. headquarters at 1251 Avenue of the Americas in Manhattan. His most recent position with the company was serving as…