June – Briefs/Sales & Development
- May 29, 2014
Swire Hotels to Debut in U.S. at $1.5B M-U Development in Downtown Miami
Hong Kong-based Swire Hotels will make its entrée into the U.S. with the opening of EAST, Miami. The hotel, which will sit within Swire Properties Inc.’s $1.5 billion mixed-use Brickell City Centre development, will open its doors to guests in 2015. While Swire Hotels and Miami-based Swire Properties Inc. are both divisions of Hong Kong’s Swire Properties Ltd., the connection did not prevent a competition for the opportunity to flag the one hotel that will grace the 5.4 million-square-foot Brickell City Centre. No fewer than 10 upscale hotel brands vied for the honor, but Swire Hotels’ new EAST brand won out.
Lincoln Property Completes Orange County’s Largest Sale for 2014
Lincoln Property Co. and Angelo, Gordon & Co. have closed the largest office transaction of the year thus far in Orange County, Calif., with the sale of Griffin Towers. An affiliate of The Blackstone Group grabbed the twin 12-story office towers for $129 million. The Lincoln Property-led team had owned the 549,940-square-foot property since March 2010 and completed an extensive lobby upgrade and improved the common areas, elevators and conference center. As a result of the upgrade, occupancy improved from 71 percent to 88 percent. The current tenant roster is highlighted by Corinthian Colleges, CH2M Hill, Ultimate Software and Premier Business Centers. CBRE Group Inc. represented Lincoln Property in the transaction, while Blackstone was self-represented.
Griffin Capital Acquires NJ Office from Mack-Cali
A 249,409-square-foot Class A office building in Parsippany, N.J., has traded hands. HFF brokered the $96.6 million sale of 22 Sylvan Way on behalf of the seller, Mack-Cali Realty Corp. Griffin Capital acquired the property and responsibility for additional leasing commission and tenant-improvement allowance obligations. The office was built in 2009 as a build-to-suit for the corporate headquarters of Wyndham Worldwide Operations, a subsidiary of Wyndham Worldwide Corp., which leases the entire facility. It is the only building in New Jersey to have LEED designations in both Commercial Interiors and Existing Building — Operations and Maintenance.
Columbia Property Trust Buys San Francisco Tower for $229M
Columbia Property Trust has executed a big move in its growth strategy with the $228.8 million acquisition of 221 Main St. in San Francisco. The 16-story, LEED Platinum-rated Class A tower is currently 81 percent occupied and is expected to have first-year in-place NOI of approximately $7 million. The purchase price includes Columbia Property Trust’s assumption of a $73 million interest-only loan secured by the property, maturing in May 2017 and bearing interest at 3.9 percent. The remaining cash portion of the purchase was funded via the company’s $500 million unsecured credit facility and by cash on hand.
USAA Develops 705 KSF HQ for National Science Foundation in Alexandria, Va.
San Antonio-based USAA Real Estate Co. has acquired the Alexandria, Va., site where a new 704,571-square-foot headquarters will be built for the National Science Foundation. Hoffman Co. was the seller. The price was not released. USAA officials said that Los Angeles-based Lowe Enterprises will be the developer and property manager once the Class A office buildings are completed in late 2016. Under a 15-year lease with the General Services Administration, the NSF will relocate from its current site in Arlington, Va., and occupy 94 percent of the two-building development.
Sumitomo Corp. Enters Chicago with Trophy Acquisition
If you are going to enter a new market, you might as well enter it with a bang. That is exactly what Sumitomo Corp. of America did with its purchase of 203 N. LaSalle in the heart of Chicago’s Central Loop District. The unique acquisition within a trophy-class building comprises 581,107 square feet of the 27-story Class A mixed-use property. The office sale transaction did not include the retail space on the first and second floors, nor the 10 levels of parking. Tenants in the 29-year-old building include DLA Piper, the University of Phoenix and Masuda Funai. Sumitomo has plans to improve the lobby and elevators, and will install a fitness center.
MGM Resorts, AEG Break Ground on New Las Vegas Arena
As if there weren’t enough reasons already to hold an event in Las Vegas, ground was broken May 1 on a new $375 million, 20,000-seat indoor arena. The space is being developed by Las Vegas Arena Co., an entity owned by MGM Resorts International and AEG, and is scheduled to open in spring 2016. The 16-acre site is west of the Strip, between the New York-New York and Monte Carlo resorts. The as-yet-unnamed arena will annually host about 100 boxing, UFC and other sporting events; major entertainment events; awards shows; and other events.
Zeckendorf JV to Build 51-Story M-F Tower in Uptown Manhattan
A new ultra-upscale residential tower will soon sprout up on Manhattan’s tony Upper East Side. Zeckendorf Development has revealed plans for 520 Park Ave., a 51-story luxury condominium property that will be built in partnership with Global Holdings Inc. and Park Sixty. Clearly, the Manhattan condo market is back. While prices for the residences have not yet been determined, a spokesperson for the developers told Commercial Property Executive they are expected to range between $6,000 and $10,000 per square foot.