March – Briefs/Sales & Development

Time Warner Sells 1.1 MSF Office Space to Related; JLL Closes $90M Boston Healthcare Sale; DivcoWest Buys M-U Portfolio for $395M; Wood Partners Begins $128M M-U Project in Miami; PM Realty, Atlas USA to Redevelop $1B M-U Site in Houston; Federal Realty Grabs NJ Retail Centers; Kilroy Completes $327M in San Diego Sales; CIM Group Acquires 7-Asset Portfolio from CW Capital.

Time Warner Sells 1.1 MSF Office Space to Related

0314_SalesTime Warner Inc. has sold 1.1 million square feet of office space it owns in Time Warner Center for $1.3 billion to a venture led by Related Cos. Partners Abu Dhabi Investment Authority and Singapore’s sovereign wealth fund financed more than 80 percent of the acquisition. Time Warner will lease back the space from Related until early 2019, when it plans to move its corporate headquarters down to Hudson Yards.

Eastdil Secured represented Time Warner in the sale. Studley will represent Time Warner in its  planned acquisition of space in Hudson Yards, while Related and Oxford will tap CBRE Group Inc.

JLL Closes $90M Boston Healthcare Sale

A joint venture comprising The Sanders Trust (Birmingham, Ala.) and Harrison Street Real Estate Capital (Chicago) has picked up two Boston-area hospitals in a $90 million transaction. Jones Lang LaSalle’s capital markets team brokered the deal, which was the largest healthcare sale in the Boston area in 2013. The assets included the 166-bed Braintree Rehabilitation Hospital in Braintree, Mass., and the 168-bed New England Rehabilitation Hospital in Woburn, Mass. In addition to arranging the transaction, Jones Lang LaSalle assisted The Sanders Trust in securing acquisition financing through Regions Bank, Customers Bank, IBERIABANK and Cadence Band.

DivcoWest Buys M-U Portfolio for $395M

DivcoWest has acquired One Kendall Square in Cambridge, Mass., an 11-building, 7.9-acre campus that includes 670,000 square feet of office, lab and retail space; a nine-screen movie theater; a 1,500-space garage; and a small development parcel. The seller was a joint venture of Rockwood Capital L.L.C. and Related Beal, which bought the property from Lincoln Property Co. and JER Partners for $211 million in 2006. During their ownership, Rockwood and Related Beal invested $75 million in the property’s infrastructure, public spaces and tenant improvements. The sellers were represented by Cushman & Wakefield Inc. The property’s roster of 50-plus tenants includes Merrimack Pharmaceuticals, Akamai, Nine Point Medical, MIT, Abcam, Next Jump, CRB Consulting Engineers, Invivo Therapeutics, Redstar Ventures, Visterra Inc., Cogo Labs, Semprus Biosciences and Catabasis.

Wood Partners Begins $128M M-U Project in Miami

Wood Partners L.L.C. has broken ground on a 431-unit asset in Miami next to the Dadeland Mall. The project also features 2,000 square feet of retail. Located at SW 72nd Avenue, the project was designed by EDI and will include two towers connected by a pedestrian bridge. Invesco Real Estate is the equity partner, and HSBC Bank USA provided a fully underwritten construction loan for the project. The community is located within two miles of South Florida’s largest employers: the University of Miami and Baptist Health South Florida.

PM Realty, Atlas USA to Redevelop $1B M-U Site in Houston

PM Realty Group and financial partner Atlas U.S.A. Holdings will undertake the redevelopment of a 35-acre parcel in Houston’s Energy Corridor that is currently the location of ExxonMobil Chemical Co. The project reportedly will require an investment of $1 billion over a 10-year period. The site has frontage along I-10 and Memorial Drive, and borders Terry Hershey Park, a 500-acre, 11-mile-long public park that winds through the Energy Corridor. ExxonMobil Chemical will remain at the site until it relocates to North Houston in 2015.

Federal Realty Grabs NJ Retail Centers

Federal Realty Trust has picked up a controlling interest in two New Jersey shopping centers totaling 285,600 square feet in Monmouth County for a total value of $161 million. The Grove at Shrewsbury and Brook 35 are both located on Route 35, less than three miles from the Garden State Parkway (exits 109 and 98, respectively). The Grove at Shrewsbury, located in Shrewsbury, is the area’s dominant shopping destination, with more than 40 national and regional tenants, including the likes of Brooks Brothers, Anthropologie, Pottery Barn, J. Crew, Banana Republic and Williams-Sonoma. Brook 35 is located 15 miles south in Sea Girt. The tenant roster there includes Ann Taylor, Banana Republic, Coach and Williams-Sonoma.

Kilroy Completes $327M in San Diego Sales

Kilroy Realty Corp. has completed a hefty series of dispositions in San Francisco. The office owner and developer sold 13 properties in two tranches for total gross proceeds of $327 million. In aggregate, the portfolio included 1.1 million square feet that was approximately 91 percent leased. Capital will be recycled to further the firm’s West Coast office development program and to pursue potential acquisition opportunities. The sale of 4910 Directors Place occurred in December 2013 and the sale of 12 other office buildings located at 10020 Pacific Mesa Blvd., 6055 Lusk Ave., 5010 and 5005 Wateridge Vista Drive, 15435 and 15445 Innovation Drive, and 15051, 15073, 15231, 15253, 15333 and 15378 Avenue of Science occurred in early January 2014.

CIM Group Acquires 7-Asset Portfolio from CW Capital

Los Angeles-based CM Group has acquired a seven-asset portfolio headlined by Two California Plaza, a 52-story, Class A office tower in downtown Los Angeles. The seller was special servicer CWCapital Asset Manangement L.L.C. Terms were not disclosed. In addition to California Plaza, the transaction involved Montclair Plaza, a two-story enclosed regional shopping mall in Montclair, Calif.; Stadium Towers Plaza, a 12-story, Class A office tower in Orange County, Calif.; Montvale Center, an approximately 125,000-square-foot office building in Gaithersburg, Md.; Comfort Suites-San Diego/Mission Valley, a 126-room hotel in San Diego; DoubleTree by Hilton Hotel-Bakersfield, a 262-room hotel in Bakersfield, Calif.; and a non-performing loan secured by 270 Technology Park, an approximately 440,000-square-foot office campus in Frederick, Md.