January – Briefs/Sales & Development

Hines, Boston Properties Acquire San Fran Development Site; American Campus Communities Announces $862.8M Buy; TCC, Clarion, Rosewood Begin 1 MSF Industrial Complex; RLJ Lodging Enters Boston with $64.5M Buy; Vornado to Sell Green Acres Mall for $500M; Kennedy Wilson Buys North Hollywood Office for $48M; Hyatt Announces Bangkok Hotel; Zeckendorf Breaks Ground on $500M Condo.

Hines, Boston Properties Acquire San Fran Development Site

Transbay Tower

Hines has finalized a joint venture with Boston Properties to acquire the Transbay Tower project, a 1.4 million-square-foot, 61-story asset to be built adjacent to the Transbay Transit Center in San Francisco.

The $190 million acquisition is expected to close in the first quarter of 2013. Hines and Boston Properties each have a 50 percent interest in the project. The building recently received final approval from the San Francisco Planning Commission. The office tower, which is slated to be the tallest building on the West Coast, is being designed by Pelli Clarke Pelli Architects.

American Campus Communities Announces $862.8M Buy

American Campus Communities Inc. is pursuing the purchase of 19 student housing assets that total 12,049 beds from affiliates of Kayne Anderson Capital Advisors for $862.8 million. The acquisition consideration consists of the assumption of $396.2 million in outstanding mortgage debt and $466.6 million in cash. The assumed mortgage debt currently has a weighted average interest rate of 5.28 percent per annum and weighted average term to maturity of 8.3 years. The acquisition of 18 existing properties is expected to close in the fourth quarter of 2012. The acquisition of the single development property is expected to close during the third quarter of 2013.

TCC, Clarion, Rosewood Begin 1 MSF Industrial Complex

The Dallas industrial market is about to get a lot bigger, courtesy of a 1 million-square-foot project by Trammell Crow Co., Clarion Partners and Rosewood Property Co. The joint venture just commenced development of DFW Trade Center Buildings 6, 7 and 9, three premier industrial structures that will sprout up in the Dallas/Fort Worth International Airport’s International Commerce Park. Trade Center 6 will be the largest of the three facilities, featuring a total of 500,000 square feet. Buildings 7 and 9 will encompass a respective 297,500 and 202,500 square feet.

RLJ Lodging Enters Boston with $64.5M Buy

RLJ Lodging Trust has acquired the 275-room Embassy Suites Boston/Waltham in an off-market transaction valued at $64.5 million. The price represents a forward cap rate of approximately 7.9 percent on the hotel’s projected 2013 net operating income. RLJ purchased the asset with cash on hand. In 2011, the hotel went through a $12 million brand conversion from a DoubleTree Guest Suites to an Embassy Suites. Guest suites and public areas were significantly upgraded during the conversion.

Vornado to Sell Green Acres Mall for $500M

Vornado Realty Trust has entered into an agreement to sell the Green Acres Mall in Valley Stream, N.Y. The Macerich Co. is purchasing the Long Island shopping center. Net proceeds from the sale are in the $185 million range after Vornado repays the existing loan and closing costs. The sale is expected to wrap up in the first quarter of 2013.

Kennedy Wilson Buys North Hollywood Office for $48M

Kennedy Wilson has acquired The Academy Tower, a 175,012-square-foot office building located at 5200 Lankershim Blvd. in North Hollywood, Calif., for $48 million. Bank of America Merrill Lynch provided $29 million in acquisition financing. Kennedy Wilson invested $19 million worth of equity in the transaction. The building is 97 percent leased, with a tenant roster including the likes of Endemol, IPPT and Starcom Worldwide. Kennedy Wilson and its institutional partners have acquired $6.8 billion worth of real estate and real estate-related debt since the beginning of 2010.

Hyatt Announces Bangkok Hotel

A Hyatt Hotels Corp. affiliate has entered into a management agreement with Grande Asset Hotels and Property Public Co. for the development of Hyatt Regency Bangkok. The 300-room hotel will be part of a mixed-use development that includes boutique shopping and an upscale residential tower. Designed by Thai architectural firm Bangkok Architects, the asset will feature a three-meal multi-cuisine restaurant, a specialty restaurant with a bar, a swimming pool, a club lounge and a spa.

Zeckendorf Breaks Ground on $500M Condo
Zeckendorf Development has broken ground on a partnership development with Global Holdings Inc. to erect an 87-unit, 44-story condominium known as 50 United Nations Plaza. The asset is located adjacent to the U.N. headquarters in Manhattan’s Midtown East submarket. The cost is estimated to be approximately $500 million. London-based Foster + Partners is the architect.