by Adriana Pop, Associate Editor

In a $13.2 million deal, Albany Road Real Estate Partners of Boston has purchased the four-story, 117,000-square-foot Gateway Center in Downtown Providence. According to the Providence Journal,the transaction closed on May 23. Bank Rhode Island financed the acquisition with a $10-million, 10-year loan.

Located at 15 Park Row West, the building is 86 percent leased, Albany Road partner Christopher J. Knisely told the newspaper. TIAA-CREF, Admirals Bank, software firm Andera, Precision Design, and the Big East athletic conference are among the property’s tenants.

The facility was developed by Gateway Eight in 1989. Construction was financed through $23 million in state bonds, which the state retirement system acquired. In 2004, the building’s developer went bankrupt and the pension fund took control of the property.

In 2006, a Connecticut developer acquired the building. Most recently, in 2009, U.S. Bank purchased the property at a foreclosure auction for $13 million.

Earlier this year, Albany Road acquired a four-story office building in Warwick’s MetroCenter office park for $13.6 million.

In regional news, the Providence Business News reports that Johnson & Wales University has sold its 86-room inn in Seekonk, Mass. for $1.65 million. The Sarchi Group acquired the property, which it has renamed the Hilltop Hotel & Conference Center.

“As the university’s first hotel internship property, the inn, purchased in the early 1980s, has played a significant role in JWU’s history and has been an important venue to the local community,” Michael Downing, the university’s vice president of auxiliary services, said in a statement.

As a condition of the sale, the Sarchi Group will honor all contracts, including pricing, for events scheduled at the Inn. The company owns and manages retail, mixed-use and apartment buildings as well as motels and hotels in Massachusetts and Connecticut.

]]> http://www.cpexecutive.com/property-types/office/boston-investor-acquires-gateway-center-in-downtown-providence-for-13-2m/feed/ 0 http://www.cpexecutive.com/property-types/office/1-2-msf-office-complex-sold-in-metairie/ http://www.cpexecutive.com/property-types/office/1-2-msf-office-complex-sold-in-metairie/#comments Mon, 17 Jun 2013 14:13:38 +0000 elizat http://synd.yardi.com/?p=139136 By Eliza Theiss, Associate Editor

One of Louisiana’s biggest office complexes has just sold. The three-tower Lakeway Center in Metairie was purchased by New York-based The Feil Organization for an undisclosed amount.  Holliday Fenoglio Fowler marketed the property on behalf of Equity Office Properties.

Located at 3900 North Causeway Blvd., the 1.2 million-square-foot office complex sits at the foot of Lake Pontchartrain, within easy access to downtown New Orleans, the New Orleans International Airport, as well as the affluent Metairie and Northshore residential areas. The Class A office complex comprises three towers, all of which are among the 10 tallest buildings in Jefferson Parish. One Lakeway Center is 14 stories and 193 feet tall and was completed in 1982. It is the sixth-tallest structure in Jefferson Parish, while Two Lakeway Center, at 259 feet and 19 levels, is the third highest. Three Lakeway, at 34 floors and 403 feet high is the tallest structure in Jefferson Parish and the 13^th highest in the Greater New Orleans area.

Lakeway Center currently boasts a 90.5 percent occupancy, rate with a tenant roster that includes names such as People’s Health Network, Fresenius Medical Care, EDG Inc. and the Drug Enforcement Administration. Some value-add renovation could soon be undertaken at the office complex, as Jeffrey Feil, the new owner’s CEO, declared in a press release: “We plan to continue to maintain and upgrade Lakeway Center to ensure it remains a top-tier office destination,” adding “This transaction builds on our nearly 40-year track record of investment and job creation in the greater New Orleans community.” Forbes has named that community the third best U.S. city for job growth in the information, publishing, software, entertainment and data processing industries.

Three Lakeway Center also includes a hotel component, not part of the purchase.

The Feil Organization, an investment, development and management firm based in New York City, owns, develops and manages more than 26 million square feet of retail, commercial and industrial properties, as well as in excess of 5,000 residential units throughout the United States. The company also has several hundred net-leased assets in its portfolio, as well as thousands of acres of undeveloped land.

Its holdings in the greater New Orleans area include four office properties in the same area as the Lakeway Center–namely, 3445 North Causeway Blvd. and Causeway Plazas I, II and III–as well as other Metairie properties, such as the Metairie Towers and The Galleria, and the Oakwood Corporate Center in Gretna. The Feil Organization also owns the Lakeside Shopping Center in Metairie, located just a mile from Lakeway Center, as well as the Carrollton Avenue site in New Orleans where the city’s first Costco is currently under development. (Click here to read more about the New Orleans Costco’s road to development.)

Image courtesy of Equity Office Properties.

One of Louisiana’s biggest office complexes has just sold. The three-tower Lakeway Center in Metairie was purchased by New York-based The Feil Organization for an undisclosed amount.  Holliday Fenoglio Fowler marketed the property on behalf of Equity Office Properties.

Located at 3900 North Causeway Blvd., the 1.2 million-square-foot office complex sits at the foot of Lake Pontchartrain, within easy access to downtown New Orleans, the New Orleans International Airport, as well as the affluent Metairie and Northshore residential areas. The Class A office complex comprises three towers, all of which are among the 10 tallest buildings in Jefferson Parish. One Lakeway Center is 14 stories and 193 feet tall and was completed in 1982. It is the sixth-tallest structure in Jefferson Parish, while Two Lakeway Center, at 259 feet and 19 levels, is the third highest. Three Lakeway, at 34 floors and 403 feet high is the tallest structure in Jefferson Parish and the 13^th highest in the Greater New Orleans area.

Lakeway Center currently boasts a 90.5 percent occupancy, rate with a tenant roster that includes names such as People’s Health Network, Fresenius Medical Care, EDG Inc. and the Drug Enforcement Administration. Some value-add renovation could soon be undertaken at the office complex, as Jeffrey Feil, the new owner’s CEO, declared in a press release: “We plan to continue to maintain and upgrade Lakeway Center to ensure it remains a top-tier office destination,” adding “This transaction builds on our nearly 40-year track record of investment and job creation in the greater New Orleans community.” Forbes has named that community the third best U.S. city for job growth in the information, publishing, software, entertainment and data processing industries.

Three Lakeway Center also includes a hotel component, not part of the purchase.

The Feil Organization, an investment, development and management firm based in New York City, owns, develops and manages more than 26 million square feet of retail, commercial and industrial properties, as well as in excess of 5,000 residential units throughout the United States. The company also has several hundred net-leased assets in its portfolio, as well as thousands of acres of undeveloped land.

Its holdings in the greater New Orleans area include four office properties in the same area as the Lakeway Center–namely, 3445 North Causeway Blvd. and Causeway Plazas I, II and III–as well as other Metairie properties, such as the Metairie Towers and The Galleria, and the Oakwood Corporate Center in Gretna. The Feil Organization also owns the Lakeside Shopping Center in Metairie, located just a mile from Lakeway Center, as well as the Carrollton Avenue site in New Orleans where the city’s first Costco is currently under development. (Click here to read more about the New Orleans Costco’s road to development.)

Image courtesy of Equity Office Properties.

by Adriana Pop, Associate Editor

Sourwine Real Estate Services, a locally based three-generation real estate owner, developer and property management company, is about to complete the first speculative office building in the Indianapolis area since 2008.

According to the Indianapolis Business Journal, construction on the $12 million, three-story structure at 8335 Keystone Crossing will wrap up this month. The 80,700-square-foot Class A office building has been designed by CSO Architects. Shiel Sexton was the construction manager. As reported by the Commercial Property Executive, Sourwine broke ground on the project last summer.

Known as 8335 Keystone Crossing, the facility is part of the company’s Keystone Office Centre. The complex is located southeast of 86th Street and Keystone Avenue and includes two other buildings, at 8395 and 8365. One of the properties is fully leased, while the other has an occupancy rate of 96 percent.

In the true nature of speculative development, the new building has yet to find an anchor tenant. Leasing is being handled by the Indianapolis office of Cassidy Turley.

“We have belief not only in our own product but a belief in the Keystone submarket to perform above average,” Joe Sourwine, the developer’s asset manager told the newspaper. “We just think it’s an advantageous time to bring this to the market.”

With a current vacancy rate around 20 percent, and few projects in the pipeline, the Indianapolis office market is beginning to rebound from the economic downturn. The Keystone at the Crossing area in particular has been showing very positive signs recently. The only other office project in this submarket that matches Sourwine’s offering is the 80,000-square-foot Three Woodfield Crossing.

Five years ago, Indianapolis-based Edgeworth Laskey Properties completed the most recent speculative office development in central Indiana. Known as Lake Pointe Center 5, the six-story, 150,000-square-foot building is located at the southwest corner of Interstate 465 and Allisonville Road.

Photo credits: Sourwine Real Estate Services

The Board of Aldermen is expected to pass a board bill to provide $4 million in tax increment financing to redevelop the Chemical Building in downtown St. Louis.

The St. Louis Business Journal reports Alderwoman Phyllis Young, who is sponsoring the bill, said LandWhite Developers LLC intends to spend $33 million to transform the Chemical Building and create 120 apartments and 7,000 square feet of street-level retail space. Lancaster Ventures Ltd., an affiliate of LandWhite Developers, is expected to pay off the TIF in 17 years or by 2030, according to Young.

Currently the building, located at 721 Olive Street, has only one tenant, Kessler Mroz Jewelry Inc., on the ground floor. Built in 1896 the building was designed by Henry Ives Cobb with a later addition in 1902 which was designed by Mauran, Russel & Garden. The 17-story building was acquired by LandWhite Developers in September 2012 for $3.9 million after the building was marketed by Cushman & Wakefield/Gateway Commercial. The company purchased the building from Centrue Bank, which in March 2011 foreclosed on the property. Centrue purchased the property with a sole bid of $3.36 million.

Polsinelli senior partner, William Kuehling, represented LandWhite in the deal. He said, for the same source, the project is also eligible to receive $1.2 million in federal historic tax credits, around $1.2 million in Federal Brownfields Tax credits and $6.2 million in state historic tax credits.

The contractor on the project is Paric Corp., and Roseman & Associates will be the architect.

Photo Courtesy of: Steven Martin via Flickr./em

By Adriana Pop, Associate Editor

Chatham Lodging Trust has agreed to purchase the 178-room Hyatt Place Pittsburgh/North Shore near downtown Pittsburgh for $40 million. Scheduled for completion by June 17, the transaction is subject to customary closing requirements and conditions.

The property will be managed by Island Hospitality Management, which is 90 percent owned by Jeffrey H. Fisher, Chatham’s chairman, president and CEO.

Open since December 2010, the Pittsburgh Hyatt Place offers easy access to some of the city’s popular attractions including PNC Park, the Carnegie Science Center, the Andy Warhol Museum, the National Aviary and the Rivers Casino. The hotel is also proximate to Fortune 500 employers such as Alcoa, Del Monte Foods, PNC Financial, U.S. Steel and Heinz.

Chatham Lodging Trust of Palm Beach, Fla. is a real estate investment trust that focuses on investing in upscale extended-stay hotels and premium branded select-service properties. Nationwide, the company owns interests in 72 hotels acquired for approximately $1.5 billion.

In regional news, the Pittsburgh Business Times reports that Gerome Manufacturing is building a 150,000-square-foot plant on more than 10 acres in the Fayette Business Park in Smithfield.

Expected to become fully operational by next spring, the new facility will enable the company to consolidate two nearby operations in Uniontown and Lemont Furnace into a single location. The approximately $9 million investment ranks among the region’s largest industrial projects this year.

“The new facility will house almost $2 million worth of new finishing equipment and plans for future purchases of new, cutting-edge equipment have already begun,” Joe Putila, president of Gerome, told the newspaper.

For the past several years, Gerome has collaborated with the Fay-Penn Economic Development Council to determine the best location for the development and obtain financing. Other partners in the project include the Washington County Industrial Development Authority, the Pennsylvania Department of Community & Economic Development and Washington Financial Bank.

Photo credits: pittsburghnorthshore.place.hyatt.com

Cushman & Wakefield | Thalhimer announced the sale of a Charleston County office asset for $340,000. Located at 3405 Salterbeck St., the office property is composed of two condominiums totaling 2,300 square feet and was purchased by MLD Properties, LLC from Charleston-based East Bay Company, LTD. Cushman & Wakefield | Thalhimer’s Mark Erickson represented the seller and was contracted by the new owner to stay on to handle leasing operations.

The asset is located in the Park West Development, a 1,700-acre premier planned development in Mt. Pleasant, SC. Park West is South Carolina developer LandTech, Inc.’s flagship mixed-use community composed of 29 neighborhoods. The project contains both single and multifamily developments (from townhomes to condominiums, live-work residences and senior housing including assisted living), as well as extensive commercial space such as retail and office space, and educational and healthcare facilities. The community features extensive recreational facilities such as pools, softball, baseball, football, soccer, lighted tennis courts, parks, playgrounds, walking, hiking and biking paths as well as indoor and outdoor swimming pools.

In other local news, Colliers International announced securing new assignments through its South Carolina chapter, thus growing its property management portfolio by 1.3 million square feet. The new additions include circa 100,000 square feet of office space, 400,000 square feet of distribution and industrial space and 800,000 square feet of retail and the following assets: The North Charleston Faber Centre, the West Columbia Westside Plaza, Parkland Plaza in Cayce and Wesmark Plaza in Sumter.

Located at 4000 Faber Dr., in North Charleston’s The Executive Park at Faber Place, Faber Center features 97,000 square feet of Class A office space and is Energy Star-certified. Tenants include SunTrust, Charleston economic Development, MetLife and Walgreens. Full-service commercial real estate developer Holder Properties developed the property. Durlach Associates has also been involved.

Image courtesy of Holder Properties

Chart courtesy of Cushman & Wakefield | Thalhimer

by Adriana Pop, Associate Editor

An affiliate of DNA Partners of Cold Spring Harbor, N.Y. has acquired the 40,524-square-foot Hope Valley Square retail center in Durham.

According to the Triangle Business Journal, Hawthorne Retail Partners of Charlotte sold the property for $7.7 million. Berkeley Capital Advisors represented the company in the sale.

Formerly known as Shannon Plaza, the shopping center at 3710 Shannon Road is anchored by one of the busiest U.S. Postal Service offices in the city. According to the newspaper’s quarterly Space survey, Hope Valley Square was nearly 100 percent leased during this year’s first quarter. Three popular restaurants, including Only Burger, Bull Street Gourmet & Market and Pop’s Backdoor South are also among the center’s tenants.

In 2007, Hawthorne Retail Partners acquired the property for $2.4 million. Through substantial renovations, the company has converted the distressed structure into a Class A neighborhood center. Upgrades included a façade enhancement, a new pylon sign, parking lot resurfacing, as well as parking lot lighting and landscaping improvements.

In regional news, CVS has signed a 20-year ground lease to build a new, 13,000-square-foot stand-alone store on the vacant outparcel at the 113,000-square-foot Rams Plaza shopping center in Chapel Hill.

The 30-year-old retail property at 1728 Fordham Boulevard is owned by the Kalikow Group, through a joint venture entity known as Rams Plaza Associates L.L.C. The company purchased the center in December 2011.

Rams Plaza is currently 95 percent occupied and anchored by Food Lion. As a long-time junior anchor, CVS will continue to occupy 8,500 square feet of space within the center until the new store is completed.

The new lease marks the beginning of the second phase of a $3 million renovation plan. In March, the owners completed the first phase, which consisted of $1.5 million in upgrades to the facade, building structures, interior courtyard and parking areas.

“We are extremely pleased to announce this agreement with CVS, which allows us to complete our redevelopment of this shopping center,” said Edward Kalikow, president and CEO of The Kalikow Group. “Tenant retention remains very high in the area, which has significant barriers to entry, and we are gratified that CVS has chosen to expand at the new Rams Plaza.”

Photo credits: www.loopnet.com

Server Farm Realty LLC recently unveiled 840 South Canal, its newest state-of-the-art data center facility in Chicago, at an invitation-only ribbon cutting ceremony attended, among others, by Chicago’s Mayor Rahm Emanuel and Peerless Network’s CEO John Barnicle.

As previously reported by Commercial Property Executive, Server Farm Realty officially took over ownership of the 450,000-square-foot facility in January 2011. The facility previously housed the General Electric Co. factory and served as Northern Trust’s data center and operations hub. Server Farm Realty invested over $220 million to redevelop and transform the building into a Tier III data center. The revamped facility now features a concurrently maintainable design with 100 percent availability and delivers approximately 20 MW of power to over 138,000 square feet of raised data center suites. The eight-story building also maintains 4 MW of critical power over five data center floors and features one of the lowest Power Usage Effectiveness ratings in Chicago: 1.4 or better.

“Chicago is the ideal location for secure, low latency network infrastructure. Aggressive power rates with a low carbon fuel mix and efficient, free cooling conditions throughout much of the year align well with what today’s technology and media companies, healthcare organizations, financial services firms, and many others are looking for in a data center,” said Avner Papouchado, CEO of Server Farm Realty. Avner Papouchado continued by welcoming Peerless Network to the company’s expanding portfolio. Peerless signed a long term lease for 12,600 square feet on the top floor of 840 South Canal.

“SFR’s newest facility is located in one of the world’s most strategic markets for data center development and connectivity,” adds John Barnicle, president and CEO of Peerless Network. “As the first tenant in the building, we have already enjoyed highly personable service, customized to meet our business’ unique needs while implemented in a timely and extremely professional manner.”

Chicago boasts one of the lowest total cost of occupancy for data center users on top of being a global data center hub and interconnection point for virtually every fiber network.

Photo Courtesy of: www.840southcanal.com

E2M Strategic Fund LP, the fourth private equity fund of Dallas-based E2M Partners, together with Wood Partners has purchased Del Arte Lofts & Flats in the Denver suburb of Aurora.

Located at 151 South Joliet Circle in Aurora, Del Arte Lofts & Flats is a 351-unit Class B multifamily community closely located to public transportation and minutes away from Interstate 225 and Denver International Airport. The partnership has planned to make various improvements to the property which will be overseen by Wood Partners. Riverstone Residential Group will manage Del Arte Lofts & Flats.

“Wood Partners has a strong track record of improving multifamily communities, not only in the Denver area but across the United States,” said Bob Stone, E2M vice president. “They are the ideal partner on this venture because they know the market and have successfully invested there.”

The E2M Strategic Fund targets multifamily, industrial, hospitality, senior living and retail properties in strategic markets with strong population and job growth. The fund was launched in 2011 and seeks to raise $350 million in equity with $89 million in commitments secured. E2M Partners anticipate closing the fund by year-end 2013.

“The Denver acquisition complements our strategy of investing in growing markets with solid market fundamentals,” said Bill Daves, president and CEO of E2M Partners. “A key element of our strategy is to invest with best-in-class operating partners who have proven track records in properly repositioning properties through comprehensive business plans. One of four multifamily investments, the Denver property is well-located and can be repositioned as an exceptional rental value in a market that is experiencing solid rent growth.”

For more market data from Denver, click here.

It’s another big apartment sale for Nashville. Although it didn’t break Eleven North’s all-time record selling price, Note 16’s $181,000 per unit selling price has certainly made a splash in Music City’s oh-so-dynamic multifamily market. According to the Nashville Business Journal, Loma Linda, Calif.based LLU Tennessee Multifamily Properties acquired the property for $15.6 million from Stonehenge Investments, the property’s Atlanta-based developer. A Jones Lang LaSalle multifamily broker represented the seller. The apartment development, now fully leased, could be converted into condominiums in the near future.

Located at the corner of Horton and 16^th Avenues, the 86-unit property sits in Nashville’s famous historic Music Row district, a hub of entertainment. Amenities at Note 16 include a 24-hour fitness center, business center, cyber clubroom featuring a coffee bar, landscaped courtyard complete with sundeck, fireplace, grilling area, water feature and resident lounge, as well as trash chutes and recycling area on every floor, designated pet walking area, controlled access building and parking deck and elevators. The pedestrian friendly community is within a short walk of numerous shops, restaurants and parks.

Note 16 is comprised of studio, one- and two-bedroom units, ranging between 488 and 1,211 square feet. Apartments feature open floor plans and nine-foot ceilings, faux hardwood floors, designer lighting and designer wood cabinets and are outfitted with black-on-black Energy Star appliances, built-in microwaves, full size washer/dryers and a high efficiency HVAC system.

Note 16 will be managed by Riverstone Residential Group.

For more info on Eleven North’s sale, click here

Image courtesy of Note 16’s Facebook page

By Adriana Pop, Associate Editor

A&B Properties, the real estate subsidiary of Alexander & Baldwin Inc., has agreed to acquire the Pearl Highlands Center in Pearl City for $141.5 million.

Located 12 miles west of downtown Honolulu, the 415,000-square-foot fee-simple retail center is 98 percent occupied. The property spreads across 13.5 acres and is anchored by Sam’s Club, Regal Theaters, Ross Dress for Less, 24 Hour Fitness and a soon-to-be-opened Buffalo Wild Wings.

The purchase price includes the assumption of a $59.3 million mortgage, which matures in September 2016. The closing of the sale, expected to occur in the second half of 2013, is subject to various conditions, including the lender’s approval of the loan assumption.

“The Pearl Highlands acquisition will represent a significant advancement of our strategy to migrate our commercial portfolio back to Hawaii,” said Christopher Benjamin, A&B’s president & COO. “The addition of Pearl Highlands will boost our total Hawaii commercial square footage over the 2 million square-foot mark—a 25 percent increase—and will make A&B the second-largest retail owner/operator in the state.”

Centrally located, Pearl Highlands serves more than 220,000 Hawaii residents who live within a five-mile radius of the center.

“The Pearl Highlands acquisition not only accelerates our Hawaii growth but it reaffirms our ability to leverage our market knowledge and relationships to acquire significant assets through off-market transactions,” Benjamin added.

In other news, Host Hotels & Resorts Inc. has acquired the 426-room Hyatt Place Waikiki Beach in downtown Honolulu for $138.5 million. The seller of the property was an affiliate of Chartres Lodging Group L.L.C. and Morgan Stanley Real Estate Fund VII Global.

Kokua Hospitality will continue to manage the hotel, in accordance with a franchise agreement with Chicago-based Hyatt.

The property underwent a $45 million renovation in 2011 and was converted to a Hyatt Place the following year. Located just 1.5 blocks from Waikiki Beach, the hotel offers guests easy access to the Waikiki Aquarium, the Honolulu Zoo and the Kalakaua shopping/entertainment district.

Photo credits: www.pearlhighlands.com

Mayor R.T. Rybak and the city of Minneapolis are spearheading a project dubbed the Green Homes North Initiative. The plan, scheduled to start this summer, calls for the construction of 100 energy-efficient homes throughout North Minneapolis on city-owned vacant lots.

The Twin Cities Daily Planet reports public and private financing were secured in 2012 to start the Green Homes North project. The first phase calls for the construction of 13 green homes, and according to Rybak the groundbreaking will take place in early June. The city of Minneapolis utilized $300,000 in local funds to secure an additional $700,000 from the Minnesota Housing Finance Agency and the Family Housing Fund. An additional $1.25 million has been secured this year for the next phase of the development, which is scheduled to break ground in fall 2013.

Back in 2012, the mayor said: “We have built green homes with our partners in North Minneapolis, and they’ve been a huge success, so now we’re taking that experiment to scale. Green Homes North will provide another boost of confidence for the housing market, the building trades and the neighborhood.”

The green homes will be built to the Minnesota Green Communities Standards as developed by the state of Minnesota or certified as LEED for Home, with high-efficiency mechanical systems, Energy Star appliances and lighting, and durable exterior construction.

Four nonprofit developers – Artspace, the Greater Metropolitan Housing Corp., Project for Pride in Living and Powderhorn Residents Group – and two private entities – Mitchell Construction and Peyser L.L.C./Isenberg+Associates – have submitted 18 proposals to the city’s Department of Community Planning and Economic Development.

Average construction costs for each green home are expected to be around $220,000, and the average sale price is estimated to be approximately $175,000. More than one-third of the Green Home North homes planned for this spring and summer will be located in the Hawthorne Eco Village, which through its success served as the basis of inspiration.

For more market data from Minneapolis, click here.

Rendering Courtesy of: Hawthorne EcoVillage via Facebook.

InterContinental Hotels Group has announced the opening of Crowne Plaza Charlotte Executive Park—the brand’s newest location. The suburban hotel is set to undergo a multi-million dollar repositioning renovation targeting both guest rooms and common areas.

The conversion of the hotel from a Marriott property to the Crowne Plaza brand, as well as the planned upgrades, are funded by MAM-Charlotte Hotel LLC, the asset’s owner. Property management will be handled by Atlanta-based McGlashan Hospitality. The hotel is franchised by an affiliate of IHG.

Located at 5700 Westpark Dr. just off Interstate 77, the 297-key hotel is in close proximity to Charlotte Douglas International Airport, as well as numerous corporate offices. Paired with its extensive meeting facilities—15,000 square feet including a ballroom and 18 meeting rooms, Crowne Plaza Charlotte Executive Park will extensively target business travelers, as expressed by Gina LaBarre, vice president of Americas Brand Management and Upscale Brands at IHG.

“Business travelers visiting Charlotte will find that the hotel offers the amenities and services they need to have a productive stay,” LaBarre said.

The hotel’s proximity to major sporting attractions, such as the Bank of America Stadium, Charlotte International Speedway and the 398-acre Carowinds Amusement Park, will appeal to leisure travelers as well.

Amenities at the 18-story hotel include a full-service business center, state-of-the-art fitness center, indoor and outdoor pool, outdoor dining terrace and bar, full-service Birch Restaurant & Bar, and Wi-Fi throughout. The hotel is part of the IHG Green Engage program, the company’s signature online sustainability tool meant to identify ways to increase energy efficiency and lower resource consumption.

The Crowne Plaza Charlotte Executive Park is part of string of Crowne Plaza properties opening in 2013, along with locations in New York, Detroit, Baltimore and Long Island.

Click here for further Charlotte market data

Image courtesy of InterContinental Hotels Group

The American Institute of Architects Illinois has awarded top prizes at the 2013 Honor Awards to Randolph Tower, the Hairpin Lofts and Hairpin Arts Center—all projects of Hartshorne Plunkard Architecture. The evening’s highest project honor, the Louis Sullivan Award, went to Randolph Tower in Chicago. The adaptive reuse project succeeded in transforming the landmark Steuben Club Building into a mixed-use residential community in the heart of Chicago’s Theater District.

Standing at 463 feet tall, the circa 1929 building is one of the tallest terra cotta-clad towers in Chicago, featuring numerous Gothic Revival architectural elements such as ornate buttresses, gargoyles and arches. Designed to house offices, retail stores and a private German social club, the building was shut down in 2001 by city officials due to hazardous conditions.

The building remained abandoned for over a decade until it was adapted into a mixed-use development with 313 mixed-income apartments, commercial office space and retail storefronts.

Brandy Koch, 2013 AIA Illinois president—who convened the national jury and served as an ex officio member, said: “The jury recognized the daunting challenges of the rehabilitation of Randolph Tower and was impressed by its ambitious scale and complexity.”

The award was accepted by Paul Alessandro, a partner with HPA and the company’s director of interior design, George Valdez. Alessandro told the audience: “This project was 13 years in the making, and getting it completed took one of the most amazing public-private partnerships ever assembled. Both of us will be proud of this project for the rest of our careers.”

The second award won by HPA, the Crombie Taylor Honor Award, was for the Hairpin Lofts and Hairpin Arts Center in Chicago. The award recognizes a project that has enhanced the natural and built environments of a community through preservation and restoration.

The rehabilitation of the former Morris B. Sachs Building converted a commercial office and retail structure into a multi-use development with a 6,000-square-foot community arts center, 7,000-square-foot of retail storefronts and 28 loft apartments—out of which 25 units were dedicated as affordable housing.

The circa 1929 flatiron building, listed on the National Register of Historic Buildings and a Chicago landmark, is well known for its triangular footprint and camel logo of the original occupant—the Hump Hair Pin Manufacturing Company.

The project is LEED Gold certified and features rooftop solar panels that provide heat for domestic hot water; a high-performance building envelope; a green roof; and ground-source heat-pump wells.

Photo Credits: Randolph Tower – Leslie Schwartz; Hairpin Lofts – Patsy McEnroe

by Adriana Pop, Associate Editor

In a $37.5 million deal, Federal Capital Partners of Maryland has acquired the 10-story Erwin Square Plaza office building in downtown Durham from National Asset Services Inc. of Los Angeles. Ben Kilgore at CBRE represented the seller in the transaction.

Located at 2200 West Main Street in the master-planned Erwin Square Development, the property offers 215,048 square feet of office space, as well as 23,744 square feet of retail and a four-level parking deck. Duke University and Duke University Health System-related companies and organizations are among the building’s tenants, which has a current occupancy rate of 96.2 percent.

“Erwin Square Plaza is of very high quality and is well-located in downtown Durham, which has seen enormous growth and revitalization in the last 10 years. The Durham CBD is experiencing healthy demand for office space, and the property has maintained a 95 percent+ occupancy since 2007. We look forward to renovating the property back to its institutional-grade potential and repositioning the important retail portion of the property,” FCP Managing Partner, Esko Korhonen said in a statement.

Federal Capital Partners now has controlling interest in or has provided financing for more than 350,000 square feet of commercial space and nearly 2,000 apartments in the Triangle area. This includes the 156-unit West Village community currently under construction in downtown Durham.

In other news, Blue Cross Blue Shield of North Carolina is expanding its Durham campus on University Drive with the acquisition of two office buildings.

According to the NewsObserver, the company has purchased University Place 4 and University Place 5 for a combined $10 million. Together, the properties offer approximately 100,000 square feet of space. The new acquisitions will enable Blue Cross to relocate its operations from the current headquarters in Chapel Hill to Durham by next year.

Blue Cross is North Carolina’s largest insurer, with more than 4,000 employees across the state. The company now owns about 560,000 square feet in eight buildings at its University Place corporate campus in Durham.

Photo credits: CBRE

In a $61.8 million deal, Kennedy Wilson has acquired the Foothill Place Apartments, a 450-unit complex in East Valley. The Beverly Hills, Calif.-based investment firm is investing $15 million of private equity in the transaction and secured a $49.7 million Freddie Mac loan through Berkeley Point Capital L.L.C.

Foothill Place comprises ten two-story and three-story buildings on an 18-acre site near the University of Utah and Park City. Resident amenities at the class B+, garden-style community include two pools, a volleyball court, dog park, rock-climbing boulder and fitness center. Kennedy Wilson’s plans include an extensive renovation, new washers and dryers, and common-area upgrades.

Berkeley Point provided the ten-year, fixed-rate loan under Freddie Mac’s Capital Markets Execution program. Terms include a 3.58 percent interest rate and two years of interest-only payments.

Foothill Place Apartments is Kennedy Wilson’s second recent purchase in the Salt Lake City market, following its acquisition of Sandpiper Apartments last November. Bob Hart, president of the firm’s multi-family management group, described the acquisitions as “excellent examples of Kennedy Wilson’s value-add repositioning strategy in markets that have stable job growth with high rental demand.”

By Adriana Pop, Associate Editor

The Koppers Building, one of the finest Art Deco office towers in the Pittsburgh region, has been listed for sale.

According to the Pittsburgh Business Times, Gerry Dudley and Ryan Sciullo of the local office of CBRE are marketing the building, which offers more than 350,000 square feet of space.

Located at the corner of Grant Street and Seventh Avenue in the heart of the city’s downtown, the 34-story skyscraper has an occupancy rate of 69.4 percent. The building is anchored by construction materials company Koppers Inc., which has a long-term lease for the space. Other tenants include the Allegheny County Bar Association, Howard Hanna Commercial Real Estate Services, Bank of America, as well as law firm Horovitz, Rudoy & Rateman LLC.

Built in 1929 and designed by Chicago architecture firm Graham, Anderson, Probst and White, the high-rise is currently owned by Koppers Building Holdings Inc. of Radnor, PA. The company purchased the tower in 1997 for $13.2 million.

In other news, developer a.m. Rodriguez Associates is repurposing the former Prospect Middle School in Mount Washington into 67 market rate apartments. The company has partnered with Sota Construction Services to renovate the historic “Art Deco” property.

The Pittsburgh Post-Gazette reports that the developer has recently purchased the building from The Mount Washington Community Development Corporation.

Called The Lofts on Mount Washington, the approximately $14 million project will offer residential units in 16 styles, ranging in size from 800 to 2,000 square feet. Plans also call for a grand auditorium entrance, an 11,000 square foot fitness facility in one of the gyms, a theater that can be rented for productions, a rooftop deck, as well as a large landscaped courtyard. Construction is expected to be complete by May 2014.

Photo credits: Wikimedia Commons

Carey Watermark Investors has announced the acquisition of the Hutton Hotel, one of Nashville’s top hospitality assets. CWI has disclosed an acquisition price of $77.3 million for the property, while also announcing an estimated $3.7 million in additional costs such as planned capital improvements and various other purchase–related spending.

Located at 1808 West End Avenue in the dynamic West End neighborhood, the 247-key boutique hotel is in close proximity to both major entertainment and employment options, such as the just-opened 1.2 million square-foot Music City Convention Center, the Country Music Hall of Fame, Grand Ole Opry, Music Row, Vanderbilt University and numerous corporate users as well as important future investments, such as the planned  900,000-square-foot mixed-use West End Summit, an office and hospitality development projected to bring around 2,000 jobs to the Midtown area (Read more about West End Summit here).

Hutton, a four-star, luxury lifestyle boutique hotel, boasts top-of-the-line amenities such as 13,600 square feet of flexible meeting space, dividable into nine meeting areas, which include the 7,000-square-foot Vista Ballroom, 24-hour business center, state-of-the-art  fitness center,  on-site spa and a 300-car parking garage. Dining venues include the hotel lobby Java Bar and the 1808 Grille and Bar. The pet-friendly hotel is also Nashville’s greenest hotel. The building itself was built in the 1970s and it used to be an office, until it was redeveloped, incorporating green features such as energy-efficient appliances and systems, including elevators that consume only 30 percent of the energy of traditional lifts, high-tech HVAC system, LED and fluorescent lights, electric car charging stations and hybrid courtesy vehicles, biodegradable cleaning products and various recycling programs.

Since its February 2009 opening, the 247-key Hutton Hotel has amassed numerous awards and accolades, increasing its investment appeal. Among such distinctions are an AAA Four-Diamond rating, a Forbes Four-Star Award. Hutton has also been included on Travel + Leisure’s T+L 500 list, on Conde Nast Traveler’s Hot List, as well as on the 2013 Forbes Travel Guide.

Amerimar Enterprises, Inc. will stay on as property manager. The Hutton Hotel is also affiliated with Leading Hotels of the World, a provider of marketing, reservations and related services to high deluxe hotels worldwide.

Image courtesy of The Hutton Hotel’s Facebook page

Dean Tower, formerly known as the Republic Tower—located on Florida Boulevard at Cloud Drive, has been sold. The buyer, identified as Baton Rouge-based Mid City Tower LLC, has paid a reported $1.2 million for the 14-story Class C office property, reports The Advocate.

Built in 1966 on 2.6 acres, the property was previously owned by Dean Building Holdings, which acquired it in 1997 for $400,000 from Kentucky-based ICH Corp., an insurance company. The 86,000-square-foot property is said to be 60 percent occupied, renting space at $14 per square foot with a roster that mostly includes small local companies. However, such wasn’t always the case. Prior to the downtown government office consolidations a few years ago, its tenant roster also included governmental entities.

Some renovation work is expected to take place at Dean Tower. However, the property can hardly compete with newer, more modern and high-income generating properties due to its dated design that includes small office plates and low ceilings.

In other local news, the Louisiana Housing Corporation recently opened its first affordable housing project inspired by post-Katrina neighborhood renewal programs in New Orleans, reports WAFB.com. Dubbed Mid City Gardens Apartment and Activity Center, the project sits on the site of Capitol City South Apartments.

The property consists of 60 apartment units, a LEED-certified community center, a rooftop garden and numerous energy-saving features, such as rooftop solar panels. All units are rented at affordable housing rates.

Additionally, the 14,000-square-foot development has a price-tag of over $12 million, all of which was covered with federal funds. The project is expected to significantly impact a problematic neighborhood. The Louisiana Housing Corporation is reportedly considering a similar approach to a distressed South Baton Rouge property.

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Image courtesy of the Louisiana Housing Corporation Facebook account

Mortenson Construction and HDR Architecture have been selected by the US Army Corps of Engineers for a $94.4 million contract to design and build the 13th Combat Aviation Brigade Barracks at Fort Carson, Colo. The plan calls for the construction of a 370,156-square-foot complex that will feature three apartment buildings. Each pair of four-story buildings will be linked by a one-story glass pavilion.

The construction will also include a loft-like glass lobby, which will offer visual connection between the landscaped entrance plaza and the sports and activity courtyard in the back. The design aims to maximize building energy efficiency by preparing to adapt to net zero energy use. The Mortenson Construction and HDR Architecture design-build team is committed to achieve LEED Gold certification from the U.S. Green Building Council.

The development will feature numerous sustainable design elements such as a consolidated energy plant for the whole complex; solar walls in the façade of the building to harvest solar energy; solar hot water panels to offer 30 percent of domestic hot water consumption; solar PV arrays to offset 24.8 percent of annual energy consumption; and a highly efficient MEP system, as well as energy-efficient radiant floors for all units.

“We’re excited to help satisfy both the Corps’ short-term and long-term goals. The energy efficiency initiatives on this project will continue to provide long-term operating cost savings,” said Maja Rosenquist, vice president and general manager of Mortenson’s Denver office.

The military residential community will be home to nearly 1,000 soldiers, and other features will include courtyard areas with basketball courts, picnic tables and grills. Other major design-build team partners include RMH Group, SE Solutions, Nolte Vertical 5, Leo A Daly, Design Collaborative, Rimrock, Rader Network and HPE. Construction is scheduled to start in August and is expected to be completed in January 2015.

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by Adriana Pop, Associate Editor

HFF has provided $24.3 million in financing for Pickwick Farms Apartments, a 516-unit multi-housing community in Indianapolis.

HFF has secured the 10-year, 3.6 percent, fixed-rate loan on behalf of Pickwick Properties LLC. The securitized loan will be serviced by HFF through its Freddie Mac Program Plus Seller/Servicer program.

Pickwick Farms is located on the northwest side of Indianapolis, near 86th Street and Interstate 465. Built in two phases from 1978 to 1980, and renovated in 2007, the community offers studio, one-, two- and three-bedroom apartments. Amenities include a movie theatre, racquetball court, indoor basketball court, playground, community room, fitness center, swimming pool and two tennis courts. At closing, the community’s occupancy rate was 96 percent.

“This property was especially attractive to lenders due to its experienced sponsorship, highly desirable infill location, heavily populated medical district and the fact it is located less than half of a mile south of Hamilton County, the fastest growing county in Indiana,” HFF managing director Jon Everson said in prepared remarks.

In other news, Legacy Urban LLC and Riley Area Development Corp. have completed the reconversion of a historic building into affordable housing. According to the Indianapolis Recorder, the property is located on Meridian Street in the Near Northside of Indianapolis.

Called 1733 Meridian Apartments, the three-story complex offers 24 one-bedroom apartments for downtown workers. Currently, 19 of the 24 residences have already been occupied. Amenities include sunlit living spaces, energy-efficient appliances, LEED-certified HVAC, secured access, laundry facilities, recycling, interior bike storage, covered outdoor picnic and grill area, as well as a community room, kitchenette and computer area.

The cost for redeveloping the once-abandoned 1919 structure amounted to $4.7 million. Funding has been provided from multiple sources, including the Department of Housing and Urban Development, Indiana Housing and Community Development Authority, City of Indianapolis, the Indianapolis Neighborhood Housing Partnership and Alliant Capital.

Photo credits: www.pickwickfarms-apartments.com

Block Real Estate Services Inc. recently closed on the purchase of a 118.5-acre Lenexa site which is set to be transformed into a $100 million industrial development.

The Kansas City Business Journal reports Block Real Estate Services Inc. has closed the $4.6 million sale for the buyers, Renner 113 Associates, a partnership led by Block which includes investment partner Chymiak Logistics LLC. The former agricultural land, located on the west side of Renner Road north of 113th Street, was sold by Busch Farms. Ken Block, Michael Block and Lou Serrone of Block Real Estate Services Inc. represented the buyers.

The L-shaped site will be developed into the Lenexa Logistics Centre, which is expected to feature over 1.6 million square feet of industrial space. The project will be built in two phases. A roughly 80-acre phase will have frontage on 113th Street and Renner Road. and a 40-acre phase will have frontage on College Boulevard.

Principal with the firm, Michael Block, told the journal that construction of the first building within the project, which will cover 260,000 square feet, is set to start in July. Occupancy is scheduled for May or June 2014.

The building was set to be built on a speculative basis but Michael Block revealed that they have already received several proposals, including one for the whole construction. The first building of the project could turn into a build-to-suit.

The project plan calls for the construction of a total of 10 buildings, including some build-to-suits and some specs. The buildings will range in size from 72,000 square feet to 350,000 square feet.

Leading operator of affordable housing, Alco Properties Inc./Alco Management, Inc. has obtained a $4.7 million loan for Greenbriar Apartments, refinancing a comparable 2010 loan, reports The Memphis Daily News. Alco Vice President Robert Hyde signed the trust deed, filed under the operating name Alco Greeenbriar Partners LP, through Love Funding Corp., a HUD MAP- and LEAN-approved lender.

Located on 12.7 acres at 3131 Madewell St., the 1973-built apartment community is worth $3.8 million, according to the Shelby County Assessor of Property’s 2013 appraisal, and it is under a PILOT program through the Shelby County Health, Education and Housing Facility Board.

The 208-unit Greenbriar Apartments is comprised of 16 one-bedroom apartments, 128 two-bedroom units and 64 three-bedroom residences.

Love Funding, which focuses solely on FHA full-insurance loans, currently boasts an estimated servicing portfolio of $1 billion.

Memphis-based Alco Management is an owner, developer and manager of conventional and government-assisted multifamily properties throughout the Southeastern US. Properties include the award-winning senior living community Riverwood Tower Apartments, located in suburban Nashville. Read more about Alco’s National Affordable Housing Management Association distinction here.

In other financing news, the Germantown-based TD Properties LLC has obtained a $1.8 million loan on a Collierville office building, reported The Memphis Daily News. TD members Terry and Jan Callaway signed the trust deed filed through Renasant Bank. The Class B office property, dubbed 60 Market Center, features 15,632 square feet of space and sits on 1.5 acres in the Shilling Farms planned development. Built in 2005, the Shelby County Assessor appraised it at a value of $1.6 million.

Image courtesy of Google Maps

Chart courtesy of CBRE Memphis

Wakefield, Mass.-based Franklin Street Properties recently announced its acquisition of a 43-story office tower and 9-story parking garage in the central business district of Denver. The two properties were acquired by the real estate investment trust for a purchase price of $183 million.

Located at 1999 Broadway, the office building features approximately 680,277 rentable square feet of space. According to the Denver Business Journal, the building was built in 1985 and major tenants include Berry Petrolium, Mercy Housing, Hein & Associates LLP and the U.S. Department of Labor. The office tower was approximately 96 percent leased at the time of sale. The parking garage is located at 2099 Welton Street.

Although closing of the purchase of the two properties was scheduled to take place on July 1, 2013, the REIT exercised their right to accelerate the closing date. The acquisition brings the total portfolio of the directly owned properties to 38, featuring an aggregate of around 8.5 million rentable square feet.

The seller of the two properties was Chicago, Ill.-based Transwestern Broadreach 1999, which acquired the property in 2005 for $77.65 million, according to property records. The seller was represented by Mike Winn and Tim Richey of Cushman & Wakefield of Colorado Inc.

In other local real estate news, the same source reports that MDC Realty Advisors USA Inc., in a partnership with Canadian REIT Artis Real Estate Investment Trust, closed on the purchase of the 23-story 1700 Broadway tower, which they had under contract. The new property manager of the building is Hannay Realty Advisors, an affiliate of MDC. The seller was Broe Real Estate, represented by Holliday Fenoglio Fowler’s Mary Sullivan and John Jugl.

Although the sale price was not disclosed, market sources estimate the 394,151-square-foot office building went for around $100 million.

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Photo Credits: David Shankbone via Wikimedia Commons.

Locally based real estate investment manager Amstar has partnered with Allied Orion Holdings, a Texas- and Colorado-based apartment developer, and announced it will start construction on a 332-unit apartment project in the Highlands/Jefferson Park neighborhood of Denver. The project, dubbed 2785 Speer, is scheduled to break ground this month and expected to be completed in the spring of 2015.

“We are excited about the opportunity to partner with Allied and build a Class A apartment community to fill the growing demand for housing in the highly desirable Highlands/Jefferson Park neighborhood,” said Kim Sperry, managing director at Amstar. “The community will be unique, with unparalleled views and amenities.”

He added: “The location is unmatched as it provides quick access to I-25 and I-70, and it is also within walking distance or a short bike ride to restaurants, nightlife, and entertainment centers in the Highlands and Downtown.”

The developer of the project will be Lauren Brockman of Allied Orion Holdings, while Martines Palmeiro Constructions will act as general contractor. Orion Real Estate Services will serve as the property manager of the completed community.

The new five-story project will offer numerous floor plans including studios, one-, two- and three-bedroom units. Residents will benefit from various amenities such as a swimming pool, spa, dog run, bocce ball court, bike workshop and outdoor entertainment deck.

The apartment project will also feature around 10,800 square feet of retail space on the ground floor on Speer Boulevard. The retail space is planned to include at least one restaurant that will offer outdoor patio seating along Bryant Street. The buildings are designed to achieve LEED certification.

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Rendering Courtesy of: 2785Speer via Twitter

The housing component at Vandenberg Air Force Base has received a major boost as the initial development period finally comes to an end. A partnership between Balfour Beatty Communiites LLC and Hensel Phelps Construction Company handled the renovation and construction of new military housing units at the base. The total investment made during the six-year interval now stands at around $158 million. Balfour Beatty Communities currently deals with a range of residential projects including multifamily, military and student housing. With the initial development period now over, the developer and property manager has increased the number of units it handles at the Vandenberg AFB to almost 1,000.

Started back in 2007, the development process has seen the partnership build around 160 brand-new homes, while 500 outdated housing units had to be taken down. A further 700 homes underwent extensive renovation operations at the Air Force Base. Also part of the lengthy development process was the construction of a new community center offering residents 6,200 square feet of common space. A pool as well as a number of multi-purpose rooms are included in the new amenity package which features parks, athletic facilities, bus shelters, perimeter fencing, and substantially improved infrastructure. The community will feature a new 2,400 square-foot maintenance facility.

Vandenberg AFB’s new residential component was built with energy efficiency in mind and to achieve that, most of the materials obtained through the renovation and demolition processes were reused to as great an extent as possible. New materials were locally sourced, local contractors were used meaning that around 80 percent of the investment went into the local community, while the construction process itself was carried out with the use of low voltage lighting, tankless hot water systems, Energy Star appliances, high efficiency furnaces, low-flow plumbing fixtures and low-VOC construction materials. Water conservation was also a priority as well as the use of native plants for the landscaping.

Image courtesy of vandenbergfamilyhousing.com