November 2014 – Briefs/Sales & Development

Brookfield Places Winning Bid on Atlantic City’s Bankrupt Revel; Durst JV Invests $1.5B into Astoria, N.Y.; Terranova Closes $342M Lincoln Road Sale in Miami; Prologis Nabs 2.5 MSF in Europe; Paramount Acquires Rockefeller’s 50 Beale for $395M; MetLife Grabs 427 KSF Trophy Office in Houston; Savanna Buys Controlling Interest in Queens’ Citigroup Building; Cinemex to Open First U.S. Theater at Swire’s Brickell City Centre.

Brookfield Places Winning Bid on Atlantic City’s Bankrupt Revel

1114_Briefs_Sales2t looks like Atlantic City will soon be back to having nine casinos. Brookfield Asset Management came out on top of the auction of the long-troubled hotel and casino Revel Atlantic City. The 1,399-key property, which features 150,000 square feet of gaming space, was developed for a staggering $2.4 billion. Brookfield clearly landed an irreplaceable asset at a deep, deep discount to replacement cost with its winning $110 million offer. The math works out to about 4.6 percent of Revel’s initial development cost. Brookfield’s offer was about $14.6 million more than Florida’s Glenn Straub was willing to lay down to achieve his vision of turning the property into a think-tank.

Durst JV Invests $1.5B into Astoria, N.Y.

Best known for developing and managing Manhattan office towers, The Durst Organization is investing $1.5 billion in a residential and retail development at Hallets Point on the Astoria, N.Y., waterfront in Queens. The Dursts have formed a joint venture with Lincoln Equities Group of Rutherford, N.J., to build 2,404 units of rental housing, including 483 affordable apartments. The 2.5 million-square-foot project will feature eight residential buildings: four market rate, two 80/20 and two affordable buildings, according to a company release. The firm said the affordable apartment buildings will be developed in partnership with Jonathan Rose Cos. The property is directly adjacent to the Astoria Houses, a NYCHA housing asset with more than 3,500 residents.

Terranova Closes $342M Lincoln Road Sale in Miami

In what is being called one of the largest deals in South Florida history, Miami Beach-based Terranova Corp. has sold its six-building portfolio of Lincoln Road area assets for $342 million. The properties were assembled over the past three-and-a-half years at a cost of $191 million. Morgan Stanley Real Estate Investors was the buyer, along with affiliates of Terranova. Retailers calling Lincoln Road home include Armani, H&M, Zara, John Varvatos, Zadig and Voltaire, Anthropologie and Apple. A full roster of restaurants and entertainment options have made Lincoln Road a top regional destination.

Prologis Nabs 2.5 MSF in Europe

Global industrial leader Prologis has acquired 2.5 million square feet of assets in the Czech Republic, Poland and Slovakia. The purchases were made under the company’s Prologis European Properties Fund II. The portfolio itself encompasses 23 Class A distribution centers. Seventeen of those (1,750,000 square feet) were in Prague. Four (596,000 square feet) were in Warsaw. The final two properties (124,900 square feet) were in Bratislava. The acquisition brings total Prologis holdings to approximately 154 million square feet.

Paramount Acquires Rockefeller’s 50 Beale for $395M

Rockefeller Group Investment Management Corp. has sold off 50 Beale St. in San Francisco on behalf of a joint venture between Rockefeller Group U.S. Premier Office Fund L.P. and Mitsubishi Estate New York. Paramount Group picked up the asset for $395 million, or approximately $596 per square foot. Eastdil Secured advised Rockefeller in the sale. The seller joint venture picked up the 662,060-square-foot office tower back in September 2012. Completed in 1968, the tower is 90 percent leased and was recently certified LEED Gold by the U.S. Green Building Council.

MetLife Grabs 427 KSF Trophy Office in Houston

MetLife Real Estate Investors has wrapped up its summer of trophy acquisitions with the purchase of 3040 Post Oak Blvd., a 427,486-square-foot office tower in Houston that is adjacent to the Galleria. HFF marketed the property on behalf of the sellers, a joint venture between an affiliate of Five Mile Capital Partners L.L.C. and Crocker Partners. The 22-story building, which is part of the 1.2 million-square-foot Lakes at Post Oak office complex, traded for an undisclosed amount. In mid-August, MetLife purchased The Loop, a 435,000-square-foot outdoor retail center in Kissimmee, Fla., In late July, MetLife and Norges Bank Investment Management grabbed One Beacon Street, a 34-story Boston office property, for $561 million.

Savanna Buys Controlling Interest in Queens’ Citigroup Building

Savanna has acquired a controlling interest in One Court Square, a.k.a. the Citigroup Building, in the Queens neighborhood of Long Island City, N.Y. The 55-story asset features 1.5 million square feet of space and is the tallest building in New York state outside of Manhattan. David Werner and his investor group, which sold the controlling interest, will also remain a partner in the deal. Long Island City is a big up-and-coming, 24/7 neighborhood in New York City. Just one stop from Grand Central Station on the 7 train, it is home to a pipeline of more than two dozen residential projects, as well as TF Cornerstone’s massive East Coast residential development.

Cinemex to Open First U.S. Theater at Swire’s Brickell City Centre

Swire Properties Inc. has announced that Mexico City-based Cinemex will open its first cinema in the U.S. at Brickell City Center in 2016. News of the 35,677-square-foot dine-in theater follows an announcement that Saks Fifth Avenue will be the anchor retailer for the 565,000-square-foot shopping complex, which happens to be Miami’s largest mixed-use urban development. The Cinemex theater will feature 622 oversized leather seats in 11 well-appointed screening rooms. The entertainment chain has also tapped Mexico’s Mike Alonso, celebrated chef of Biko, and mixologist Mica Rousseau to handle refreshments. Miami-based Loguer Design will handle interior design. Cinemex started as a Harvard Business School business plan and became the largest venture-capital start-up in Mexican history.