January 2015 – Briefs/Sales & Development

Blackstone Sells IndCor Properties to GIC for $8B

In one of the largest industrial property transactions to date, Blackstone has agreed to sell IndCor Properties to GIC, Singapore’s  sovereign wealth fund, for $8.1 billion. Upon this announcement, IndCor, which operates 117 million square feet of high-quality industrial properties throughout United States, will no longer be pursuing an IPO. Closing is expected to occur in the first quarter of 2015. Eastdil Secured (a wholly-owned subsidiary of Wells Fargo & Co.), Citigroup, Barclays and RBC Capital Markets acted as advisors to Blackstone.

Massachusetts Ballot Initiative Opens Door to $800M MGM Resort in Springfield

The voters have spoken and the Massachusetts Gaming Commission wasted little time responding. The Nov. 4 election saw the failure of a ballot measure to repeal the 2011 law that allows gaming resorts in the state, and it was a big failure; more than 1.2 million voters gave it the thumbs down. MGM Resorts responded to voters’ resounding rejection of the ballot measure that day by bringing in heavy equipment to the project’s 3,500-space parking lot site the next day. The following day, the MGC unanimously approved the presentation of a gaming license to MGM Resorts International to operate MGM Springfield, an $800 million resort casino. MGM Springfield will sprout up on a nearly 15-acre site in downtown Springfield. The mixed-use destination will encompass a 250-room hotel tower, 25,000 square feet of gaming space and 55,000 square feet of retail and restaurant offerings.

BGC’s Acquisition of ARA to Drive NGKF’s M-H Growth

BGC Partners, parent company of Newmark Grubb Knight Frank, has agreed to acquire Apartment Realty Advisors for $110 million. The Atlanta-based firm is the nation’s largest privately held, full-service investment brokerage network specializing solely in the multi-housing sector. The acquisition of ARA is expected to drive significant growth for NGKF within the multi-housing capital markets space. In addition to the approximately $110 million price, additional cash- and equity-based earn-outs may be paid if certain performance targets are met.

Jamestown Grabs 220 KSF Cambridge Office Building for $136M

Jamestown has enhanced its presence in metropolitan Boston with the addition of the Davenport Building, a 220,000-square-foot office property in Cambridge, Mass. The real estate investment firm acquired the asset from DivcoWest for $136 million. DivcoWest had acquired the Davenport in 2012 for just $79 million. Originally developed in 1860, the Davenport started out as the Davenport Furniture Factory and more than a century later in 1987, the seven-structure property was transformed into a single-office building. The Davenport last underwent a makeover in 2010, when the owner invested $18 million in capital improvements.

MG, Florida East Coast Realty & Corigin Plan 60-Story Condo Tower in Miami

MG Properties, Florida East Coast Realty and Corigin Real Estate Group will team to develop 1201 Brickell Bay Drive, a 1.8-million-square-foot, luxury residential development on Biscayne Bay in Miami’s financial district. The 2.5-acre property is the last remaining development space on Miami’s popular Brickell Corridor and offers prime waterfront property. Plans call for two main towers in excess of 60 stories, with each delivering panoramic views stretching from Key Biscayne to South Beach.

Miami Worldcenter to Add 60-Story Condominium Tower

Miami Worldcenter will soon be adding Paramount Worldcenter, a 60-story condominium that will sit above retail giants Macy’s and Bloomingdale’s in Miami’s noteworthy mixed-use complex. The 706-foot high-rise will consist of 466 city- and bay- view residences, and will be adorned with a large amenity deck, cascading gardens and infinity pools and crowned with a four-story rooftop deck that is designed to mirror the architectural accents of an Italian yacht. The property is just steps from Biscayne Bay and flanked by cultural landmarks, such as the American Airlines Arena, Adrienne Arsht Center and the Pérez Art Museum Miami. The project is scheduled to break ground in the first quarter of 2015 with occupancy slated for the third quarter of 2018.

Ivanhoe Cambridge, Callahan Capital Buy 2 Seattle Office Buildings for $280M

Ivanhoe Cambridge is expanding its downtown Seattle office portfolio to 2.6 million square feet with the purchase of two adjoining properties, 1111 Third and Second & Spring, for $280 million. The acquisitions, made with U.S. partner Callahan Capital Properties, give the Montreal-based firm control of about 13 percent of the downtown Seattle Class A office market. The larger of the two buildings is 1111 Third, a 34-story, 572,000-square-foot Class A office property that was recently renovated. Second & Spring, located at 1100 2^nd Ave., is an adjoining five-story, 135,000-square-foot historic building constructed in 1906 and redeveloped in 2013.

TIAA-CREF Buys 21 Penn, 2 Herald Square in Midtown Manhattan

The buying spree by TIAA-CREF is so fast and furious lately that the latest deal was actually two of them. The fund announced in late November that it had purchased two New York buildings: 21 Penn Plaza, near Hudson Yards, and 2 Herald Square (a.k.a. 1328 Broadway), a few blocks east. The latter building was purchased in a joint venture with Norges Bank Investment Management, manager of the Norwegian Government Pension Fund Global, which took a 49.9 percent interest. NBIM stated that its contribution on 2 Herald Square was $182 million, valuing the site at $365 million. The sellers of 21 Penn Plaza were Savanna and the Feil Organization, which had purchased the property in a joint venture in 2011. The building is on the southeast corner of W. 31st St. and 9th Avenue. Massey Knakal Realty Services marketed 21 Penn Plaza on behalf of the sellers.