April – Briefs/Sales & Development

Transaction Kicks off TCC, Hanover Co. Redevelopment in Austin; Avison Young Sells 1.6 MSF Chicago Distribution Center; TDG, Angelo Gordon Complete $110M Maryland Apartment Purchase; Ashford Buys Chicago’s Sofitel Hotel for $153M; Hudson’s Bay Co. Sells Toronto Tower for $650M; Partnership Grabs San Fran’s Mark Hopkins Hotel for $120M; Inland Makes Splash with $183M Hotel Purchase in Honolulu; KBS Acquires Salt Lake Tower for $170M.

Transaction Kicks off TCC, Hanover Co. Redevelopment in Austin

Briefs_SalesIn downtown Austin, the sale and transfer of the Green Water Treatment Plant (GWTP) parcel, known as Block 1, has officially kicked off the redevelopment of the site by a partnership involving Trammell Crow Co., The Hanover Co. and Pacific Life Insurance Co. The former GWTP site is expected to yield a 1.7 million-square-foot mixed-use development. Plans call for a 38-floor, three-tiered mixed-use tower that will feature approximately 440 apartments, among them 50 affordable units. Also included will be more than 40,000 square feet of office and retail space.

Avison Young Sells 1.6 MSF Chicago Distribution Center

One of the largest corporate distribution facilities in the nation has been sold to CPA®:18 – Global, a non-traded REIT affiliate of W.P. Carey Inc. Avison Young arranged the sale of The Dart Container/Solo Cup National Distribution Center, a 1.6 million-square-foot warehouse/industrial facility located at 701 Central Ave. in University Park, Ill. Based on square footage, the transaction was the largest corporate distribution space sale in Chicago since January 2006.

TDG, Angelo Gordon Complete $110M Maryland Apartment Purchase

The Donaldson Group and equity partner Angelo, Gordon & Co. are the proud new owners of Cider Mill Apartments, an 864-unit garden-style community located in Montgomery Village, Md. The partners picked up the property for $110 million, and plan to invest an additional $15 million in improvements. Matthew Williams and Maury Zanoff of CBRE Capital Markets assisted the partnership in obtaining acquisition financing from HSBC Bank. The seller, Home Properties, was represented by Bill Roohan and Brian Margerum of CBRE’s Baltimore-based investment sales group.

Ashford Buys Chicago’s Sofitel Hotel for $153M

In what has been dubbed the largest single-asset hotel transaction in Chicago since 2012, Ashford Hospitality Trust has acquired the Sofitel Chicago Water Tower Hotel from The Blackstone Group for $153 million. JLL’s Hotel and Hospitality Group worked on behalf of Blackstone in closing the sale. JLL also secured $80 million in acquisition financing on behalf of Ashford Hospitality. Managing director Adam McGaughy and senior vice president John Nugent led the JLL team in the transaction. Executive vice presidents Bill Grice and Keith Largay led the financing effort. The 32-floor, 415-key hotel is located at 20 E. Chestnut St. in Chicago’s affluent Gold Coast neighborhood.

Hudson’s Bay Co. Sells Toronto Tower for $650M

Hudson’s Bay Co. has sold its Queen Street flagship store and Simpson Tower office complex in Toronto to The Cadillac Fairview Corp. for $650 million. The price represents an implied cap rate of roughly 4.7 percent. HBC will lease both properties back from the new owner for a base term of 25 years. The Queen Street property will serve as Canada’s first Saks Fifth Avenue, which is expected to open in the fall of 2015.

Partnership Grabs San Fran’s Mark Hopkins Hotel for $120M

A partnership between affiliates of Michael Rosenfeld’s Woodridge Capital Partners and funds managed by Oaktree Capital Management has agreed to acquire the Mark Hopkins Hotel at One Nob Hill in San Francisco for a cool $120 million. The hotel is being picked up from InterContinental Hotels Group, which will continue to manage the asset. Oaktree and Woodridge plan to invest $20 million into renovations. The 383-key Mark Hopkins Hotel opened on Dec. 4, 1926, on the site of railroad magnate Mark Hopkins’ 40-room mansion. Hopkins was one of the founders of the Central Pacific Railroad.

Inland Makes Splash with $183M Hotel Purchase in Honolulu

Inland American Lodging Group Inc. acquired the 645-key Aston Waikiki Beach Hotel in Honolulu for $183 million. Aston Hotels & Resorts will continue to manage the 23-floor hotel, which includes 19,400 square feet of retail that is currently 100 percent leased to restaurants and retailers such as Tiki’s Bar & Grill and Wolfgang Puck’s Express.

KBS Acquires Salt Lake Tower for $170M

Public non-traded KBS Real Estate Investment Trust III has picked up 222 Main, a Class A, LEED Gold-certified tower in Salt Lake City’s CBD, for $170.5 million. The 2009-built property was Utah’s first LEED Gold building and features 426,657 square feet of space, a nine-story parking structure and 9,000 square feet of ground-floor restaurant and retail amenities. Goldman Sachs is 222 Main’s largest tenant, occupying 176,373 square feet. Law firm Holland & Hart is the second-largest tenant.