December 2014 – Briefs/Sales & Development

The Rockefeller Group to Acquire Majority Interest in TA Realty; Thor Equities JV Buys Manhattan’s 530 Fifth Ave.; Excel Trust Grabs Three Shopping Centers from DDR in Utah; Hines, MG Properties Team Up on Development Adjacent to Hudson Yards; American Real Estate Partners, Investcorp Buy $176M Office Complex; John Hancock Drops $244M on 40-Story Chicago Tower; Ivanhoé Cambridge Buys Interest in Denver Office Duo; Chesapeake Lodging Trust Adds JW Marriott San Francisco to Portfolio.

The Rockefeller Group to Acquire Majority Interest in TA Realty

Sales_The Rockefeller Group HQ_1221 Avenue of the AmericasThe Rockefeller Group is expanding its global investment management platform with the acquisition of the majority stake in Boston-based TA Realty L.L.C. Terms of the deal, expected to close by the end of the year, were not released. TA Realty, which has about $12 billion in assets under management, will become The Rockefeller Group’s primary real estate investment management platform in the United States. The acquisition will enable The Rockefeller Group to establish a global platform totaling $32 billion in assets under management through Mitsubishi Estate Co. Ltd.

Thor Equities JV Buys Manhattan’s 530 Fifth Ave.

Thor Equities continues building up its presence on Manhattan’s famed Fifth Avenue, closing on the purchase of 530 Fifth Ave., a 26-story office and retail building, for $595 million. It is the firm’s 12th asset on Fifth Avenue stretching from 20th Street north to the tony Plaza District at 55th Street. General Growth Properties and RXR Realty joined Thor on the acquisition purchase from a partnership of Rockwood Capital, Jamestown, Crown Acquisitions and Murray Hill Properties. The Rockwood Capital and Jamestown partnership, which announced the pending sale in June, acquired the building that occupies the entire western block between 44th and 45thstreets in early 2012 for $390 million and invested more than $10 million to modernize the building’s infrastructure. Renovations included upgrades to the lobby, HVAC system, elevators and common areas.

Excel Trust Grabs Three Shopping Centers from DDR in Utah

A portfolio of three retail shopping centers in Utah has traded hands between two publically traded REITs. Ohio-headquartered DDR sold the assets to Excel Trust for $225.6 million. The assets include: The Family Center at Fort Union in Midvale (682,279 square feet); The Family Center at Taylorsville (779,439 square feet); and The Family Center at Orem (150,667 square feet). Lucescu Realty brokered the sale on behalf of DDR. An additional component of the sale was the simultaneous sale of the Taylorsville center from Excel Trust to Dallas-based TriGate Capital.

Hines, MG Properties Team Up on Development Adjacent to Hudson Yards

The Chelsea neighborhood of Manhattan continues to serve as a hotbed for development activity. MG Properties, the development arm of McCourt Global, and Hines have announced an equity and development partnership to build a mixed-use project at 360 Tenth Ave., which is immediately adjacent to Hudson Yards. The site was picked up from Sherwood Equities for about $167.5 million in 2013. The partnership also announced that SHoP Architects will design the high-profile project, which is zoned for up to 733,406 square feet.

American Real Estate Partners, Investcorp Buy $176M Office Complex

A joint venture comprised of American Real Estate Partners and Investcorp has completed the $176 million acquisition of Canal Center, a 540,000-square-foot, four-building office complex that sits on the bank of the Potomac in Alexandria, Va. The deal was American Real Estate Partner’s second investment through its American Real Estate Partners Strategic Office Fund, and its fourth in partnership with Investcorp. Canal Center’s four buildings were originally built in 1987, and the complex is currently 83 percent leased with no major tenant expirations until 2018.

John Hancock Drops $244M on 40-Story Chicago Tower

John Hancock, the U.S. division of Manulife Financial Corp., has added 55 West Monroe to its portfolio. The 40-story, 804,214-square-foot tower is located in Chicago’s Central Loop, and was acquired for $244 million. The new acquisition brings the company’s global real estate portfolio to $10.5 billion, with properties totaling 39 million square feet. The 1981-built asset is LEED Gold certified and sits at the corner of Monroe and Dearborn streets.

Ivanhoé Cambridge Buys Interest in Denver Office Duo

Ivanhoé Cambridge has acquired a 40 percent interest in a portfolio of properties, which includes the U.S. Bank Tower, the Tabor Center and the adjacent Two Tabor development site, all located in downtown Denver, from Canada Pension Plan Investment Board for approximately $200 million. The deal makes Ivanhoé Cambridge one of the top landlords in Denver’s commercial business district, with approximately 6 percent of all Class A office inventory downtown in its portfolio. According to a third-quarter 2014 office market report by JLL, outsized exposure to the energy, healthcare and technology sectors has led to an employment and population expansion that has been among the nation’s strongest.

Chesapeake Lodging Trust Adds JW Marriott San Francisco to Portfolio

Chesapeake Lodging Trust has closed the acquisition of the JW Marriott San Francisco Union Square for a purchase price of $147.2 million, which equates to $437,000 per key. Chesapeake also assumed the existing management agreement with Marriott International Inc., as well as the existing ground lease covering the property, which expires in 2083. The hotel is a 337-key ‘quiet luxury’ branded hotel that sits on a prime corner location at Mason and Post in the heart of Union Square and features a 17-story atrium lobby. It also features some of the largest accommodations in San Francisco, including 23 luxury suites that range from 600 to 1,500 square feet.