June – Briefs/Sales & Development
- May 29, 2013
Boston Properties, Hines Break Ground in San Fran
Boston Properties and Hines have closed on the $192 million purchase of 101 First St. in San Francisco, where they will erect the 60-story, 1.4 million-square-foot Transbay Transit Tower. The site was acquired from Transbay Joint Powers Authority, which will use the money for the Transbay Transit Center at First and Mission streets, a $4 billion transit hub under construction that will feature a bus and rail station with a 5.4-acre park on top of it.
Both Transbay Transit Tower and Transbay Transit Center are being designed by Pelli Clarke Pelli Architects. The tower will be 1,070 feet, making it the tallest on the West Coast and beating out New York City’s Chrysler Building for the honor of seventh tallest in the country. The project is slated for completion in 2016.
Behringer Harvard, Trammell Crow Begin Houston M-F Project
Houston is getting a new luxury apartment community, thanks to a venture between Behringer Harvard and Trammell Crow Residential. The partnership is building a 270-unit community on a 2.9-acre site in the Montrose/Museum District submarket of the Space City. Development began with the demolition of 1960s-vintage housing at 1301 Richmond St., making way for the luxury community that will be known as The Muse Museum District. Completion is scheduled for 2014. The finished property will comprise a four-story residential building constructed above a two-level parking garage. Common amenities will include an Internet café, business center, fitness center, swimming pool and dog-amenity station.
Ivanhoé Cambridge Joins Goldman, Greystar in $1.5B M-F Buy
Ivanhoé Cambridge of Montreal has made its largest multi-family investment, joining a partnership of Goldman Sachs & Co. and Greystar Real Estate Partners in the $1.5 billion acquisition of 8,010 multi-family units from Equity Residential. The specific amount invested, however, was not disclosed. Ivanhoé Cambridge is the real estate subsidiary of the Caisse de depot et placement du Quebec, a leading Canadian institutional fund manager. The firm has assets in 20 countries valued at more than $35 billion, with about $3.7 billion invested in the U.S. office market and more than $2 billion in U.S. multi-family assets.
Hollister Breaks Ground on Newark’s $150M M-F Teachers Village
Teachers Village, an education-centric mixed-use project in Newark, N.J., graduates to a new level with the groundbreaking on another residential building in the $150 million development. The aggregate 123 apartment units encompassing the 420,000-square-foot destination in Newark’s historic Four Corners district are being marketed to teachers in the Newark school system. Teachers Village is not being developed on a teacher’s salary and it will show. Celebrated architect Richard Meier is behind the design of the eight-building development. Goldman Sachs & Co. is an investor, as is international investor Nicolas Berggruen.
KBS Adds 518 KSF to Austin Portfolio
KBS Strategic Opportunity REIT has increased its office holdings in Austin to approximately 1.5 million square feet with the acquisition of the Austin Suburban Portfolio, a group of three office properties totaling 518,000 square feet. The REIT purchased the Class A and B assets from TPG/CalSTRS Austin L.L.C., a joint venture involving Thomas Properties Group Inc. and pension fund CalSTRS, for $76 million. The change in ownership of Park Centre, Westech 360 and Great Hills Plaza comes just six months after TPG/CalSTRS came into possession of the three assets with the $859 million purchase of an eight-property, 3 million-square-foot office portfolio from a venture consisting of Lehman Brothers Holdings Inc., an offshore sovereign wealth fund and TPG/CalSTRS L.L.C., another joint venture between TPG and CalSTRS.
Kilroy Breaks Ground on 450 KSF Office Tower
In the latest milestone for the 145-acre redevelopment area around San Francisco’s new Transbay Transit Center, Kilroy Realty Corp. has broken ground on 350 Mission St., a new office tower that will rise at Mission and Fremont streets, directly across from the transit center. The building has been fully pre-leased to Salesforce.com, a provider of enterprise cloud computing, since the project was first announced last fall. Scheduled to be completed in early 2015, the LEED Platinum glass-and-concrete tower is currently set for 27 stories, though Kilroy is aiming for a final height of 30 floors, which will total about 450,000 square feet.
Mack-Cali Completes $88M Buy
Mack-Cali Realty Corp. has completed its previously announced acquisition of Alterra at Overlook Ridge IB for approximately $88 million. The company already acquired the sister building, Alterra at Overlook Ridge IA. Both assets are located in the master-planned community of Overlook Ridge in Revere and Malden, Mass., a part of the Boston MSA. Combined, the two acquisitions total $149.3 million. Overlook Ridge IB contains 412 rental units and is currently 96.1 percent leased.
EQR Sells DC M-F Asset for Record Price
Dweck Properties has purchased Archstone Crystal Towers, a 912-unit transit-oriented high-rise apartment community located in Arlington, Va., from Equity Residential for $322.3 million. The price represents the largest sum ever paid for a single multi-family property in the Washington, D.C., region. Located at 1600 S. Eads St., the two 12-story towers are situated on approximately 10 acres of land less than a mile from The Pentagon and the Fashion Centre at Pentagon City and just a block from the Crystal City Metro Station. Originally constructed in 1968, the property underwent a comprehensive renovation in 2002. That program included the addition of a new lobby, leasing office, resident lounge/cyber-café and fitness center. The asset has seen more than $8.7 million in capital improvements over the past five years.