Briefs – April/Sales & Development
- Mar 27, 2013
Tishman, China Vanke to Build San Fran Condo Tower
A new two-tower condominium property will soon sprout up in San Francisco, now that Tishman Speyer and China Vanke Co. have joined forces to build a 655-unit residential community at 201 Folsom St. The project marks Shenzhen, China-based China Vanke’s entrée into the North American real estate market.
The residences at the premier condo property will be housed in a 37-story building and a connected 42-story tower in the South Beach/Rincon Hill neighborhood, just outside of the Financial District. The architectural firm of Arquitectonica/Heller Manus is behind the design of the two structures, which will sit adjacent to Tishman’s successful 2009-built, two-tower Infinity condo property.
North American Properties Begins $600M Avalon Project
North American Properties has officially broken ground on Avalon, an 86-acre mixed-use development located in Alpharetta, Ga. The $600 million resort-inspired asset will open in August 2014. It will host retail, entertainment, restaurant, residential, office and hotel space, coming together as one of the largest mixed-use projects in the Southeast. The group already has commitments from 34 retail and restaurant tenants, making 50 percent of the property leased (there is another 30 percent in negotiations). Anchor tenants include Regal Cinemas, Whole Foods and Anthropologie.
Inland Enters into Student Housing Development Partnership
Inland American Communities has entered into a partnership with an Oregon-based development company and invested in a student housing project known as University House Arena District. The asset is being constructed a quarter mile from the University of Oregon campus. It is slated to open in the fall of 2013 and will add 244 beds to Inland American Communities’ existing student housing portfolio, which includes more than 5,000 beds.
Stockbridge, SBE, Daniels JV to Put Hotel in $400M Seattle Tower
Hospitality developer SBE Entertainment Group L.L.C. is bringing the SLS brand to downtown Seattle, where it will team up with Stockbridge Capital Group and Daniels Real Estate to put a luxury hotel in Daniels’ planned $400 million mixed-use tower. The 43-story building—the tallest to be erected in the city in 20 years—will be located at Fifth and Columbia in downtown Seattle. SLS Hotel Seattle will occupy floors two through 15, with 184 guest rooms and suites. Construction of the tower, which will have 528,000 square feet of Class A office, is expected to begin in the fourth quarter of this year, with completion slated for 2016.
Ivanhoé Cambridge, TPG Acquire London Asset for $395M
Ivanhoé Cambridge and TPG have acquired Woolgate Exchange, a trophy office building located in London’s business district. The 351,000-square-foot building was picked up for $395 million, which brings Ivanhoé Cambridge’s total investment in London to more than $650 million over the past year. The asset will be co-managed by the joint venture. Woolgate Exchange is currently 100 percent leased to Portigon AG, with sub-tenants including Invested Asset Management, Sidley Austin and the University of Chicago.
Pebblebrook Buys San Diego Hotel for $112.5M
Pebblebrook Hotel Trust has acquired the Embassy Suites San Diego Bay — Downtown for $112.5 million. HEI Hotels and Resorts will manage the 337-suite upscale property that serves downtown San Diego. As part of the transaction, Pebblebrook will assume a $66.8 million secured, non-recourse loan, with the balance of the acquisition funded with cash. The property sits blocks from Pebblebrook’s recently renovated Westin Gaslamp Quarter, and in close proximity to the San Diego Convention Center, Seaport Village, San Diego Trolley Station and PETCO Park.
Kilroy Buys Seattle Office for $170M
Jones Lang LaSalle Inc. has closed the sale of Westlake Terry, a two-building, 320,399-square-foot office asset located in Seattle’s South Lake Union, on behalf of a joint venture between Vulcan and Group Health Cooperative. Kilroy Realty Corp. picked up the Class A asset for $170 million. Westlake Terry occupies a full city block. The fully leased asset is home to Microsoft and Group Health, as well as retail tenants including Starbucks, Chase Bank, Rain Fitness and Flying Fish. The property earned the Energy Star label for operating efficiency and LEED Gold certification.
KBS REIT III Nabs Minneapolis Office for $118.1M
Non-traded real estate investment trust KBS REIT III has acquired RBC Plaza, a 678,045-square-foot mixed-use office asset located in downtown Minneapolis. The purchase price (net of closing credits) was $118.1 million. The trophy-quality asset was 83 percent occupied at closing, and KBS plans to reconfigure some of the existing 68,677 square feet of retail and amenity space. Brookfield Office Properties was the seller, and KBS has hired Cushman & Wakefield Inc./NorthMarq to manage and lease the asset.