December – Briefs/Sales & Development

ARCP to Buy Cole for $11.2B; Facebook, St. Anton to Build Affordable Infill Asset; Chariot Unveils $1B Revitalization Plan for Philadelphia; San Francisco’s Apple, Bulgari Buildings Trade for $160M; Acadia to Dispose of Two Fund II Assets; Ivanhoé Buys 51% Interest in NYC’s 1211 Avenue of the Americas; EPR Properties Grabs Poconos Ski Resort; JV to Develop M-U Project Near New 49ers Stadium.

ARCP to Buy Cole for $11.2B

1213_Briefs_SalesIn one of the real estate industry’s potentially furthest-reaching deals in recent years, American Realty Capital Properties Inc. will acquire Cole Real Estate Investments for $11.2 billion. The deal will create the world’s biggest net-lease REIT, with an estimated enterprise value totaling $21.5 billion. Closing is expected during the first half of 2014. Combining New York City-based American Realty Capital Partners Inc. and Cole Real Estate Investments, headquartered in Phoenix, will produce a portfolio of more than 3,700 properties encompassing 100 million square feet in 49 states and Puerto Rico.

Facebook, St. Anton to Build Affordable Infill Asset

There will be 394 units of affordable housing built near Facebook’s campuses, thanks to a partnership between the social media behemoth and St. Anton Partners. Known as Anton Menlo, the property will be within walking distance of both Facebook’s existing Menlo Park, Calif., headquarters, and its new west campus, which is currently under construction. The infill redevelopment project was designed by KTGY Group Inc., and will take shape on 10 acres of former industrial land. The $120 million development will feature a market-rate amenity package that includes an on-site convenience store, a sports pub, a bicycle repair shop, a pet spa, a pool with spa and cabana, a fitness center, an Internet café, a community kitchen and a large rooftop with three themed areas.

Chariot Unveils $1B Revitalization Plan for Philadelphia

Chariot Cos. has big plans for Philadelphia’s working-class neighborhoods and a big budget to make them happen. The certified Community Development Entity has announced that it will invest $1 billion in projects — including the 1 million-square-foot Chariot Clean Energy Center and a 1,050-unit residential community dubbed Chariot Landing —designed to help revitalize underserved areas and put the city on the map as an energy leader. Both the Clean Energy Center and Chariot Landing will be located in historically underutilized areas, the specific locations of which are as yet undisclosed. The Clean Energy Center will be a technology-based business hub that Chariot anticipates will help spur the redevelopment and expansion of the knowledge-based workforce in the City of Brotherly Love.

San Francisco’s Apple, Bulgari Buildings Trade for $160M

In a transaction advised by Savills, German investor Deka Immobilien has closed the portfolio sale of two landmark retail assets in San Francisco’s Union Square submarket. The package included Apple’s retail store at One Stockton St. and Bulgary’s flagship premises at One Union Square. A U.S.-based private investor picked up the pair of trophy stores for $160 million. Apple has called the 16,987 square feet at One Stockton St. home since it was built in 2004. The Bulgari Building at One Union Square is a fully leased, seven-floor asset with 42,640 rentable square feet.

Acadia to Dispose of Two Fund II Assets

Acadia Realty Trust has entered into a contract to sell both the Pelham Manor Shopping Plaza in Pelham Manor, N.Y., as well as Fordham Place, located in the Bronx, N.Y. The assets, which were redeveloped by Acadia Strategic Opportunity Fund II L.L.C., carried a gross sales price of $192.4 million. Pelham Manor is a 228,595-square-foot shopping center in southern Westchester County that is anchored by a BJ’s Wholesale Club. Fordham Place is a 14-story, 276,475-square-foot retail and commercial building near Fordham University that boasts $500 million in annual sales.

Ivanhoé Buys 51% Interest in NYC’s 1211 Avenue of the Americas

Ivanhoe Cambridge, the real estate arm of one of Canada’s largest pension funds, continues to expand its U.S. office holdings with the acquisition of the majority stake in 1211 Avenue of the Americas in Manhattan for $850 million. The firm purchased the 51 percent managing member interest from an affiliate of Beacon Capital Partners, which had owned the 45-story Class A trophy asset — located on ‘Corporate Row’ near Rockefeller Center, between 47th and 48th streets — since 2006.

EPR Properties Grabs Poconos Ski Resort

With the start of the Eastern ski season just a few weeks away, EPR Properties is poised to enjoy its first winter as the owner of Camelback Mountain Resort in Tannersville, Pa. The specialty REIT acquired the property for a cool $70 million from Spirit Realty Capital. In addition to 160 acres of skiable terrain, the resort includes a water park, outdoor adventure park, 40-lane tubing facility and base lodge. The property caters to 900,000 visitors a year, and is currently leased to CBH20, which has operated the resort since 2005. CBH20 has committed to an additional 20 years, so it should be business as usual this winter and for many more to come.

JV to Develop M-U Project Near New 49ers Stadium

A joint venture of Montana Property Group, of Hayward, Calif., and Lowe Enterprises, of Los Angeles, has unveiled plans for Santa Clara Centennial Gateway, a $400 million, 860,000-square-foot, entertainment-themed mixed-use development on a 9.5-acre downtown site owned by the city of Santa Clara, Calif. The project, slated to include hotel, office and entertainment space at Tasman Drive and Centennial Boulevard, would be adjacent to the $1 billion, 68,500-seat Levi’s Stadium, shortly to be the new home of the San Francisco 49ers. The site is adjacent to the Santa Clara Convention Center and California’s Great America amusement park.