October – Briefs/Sales & Development
- Sep 25, 2013
Hyatt Buys Peabody Orlando for $717M
Hyatt Hotels Corp. has acquired The Peabody Orlando, a 1,641-key hotel, from UST Hotel Joint Venture Ltd. for $717 million. The asset will be rebranded as the Hyatt Regency Orlando Convention Center. The deal with Memphis-based Belz Enterprises and Estein & Associates USA Ltd. of Orlando, Hyatt’s joint venture partners, is expected to close on Oct. 1. While it will be the sixth Hyatt-branded hotel in Orlando, it is the first to feature a convention center.
The Peabody Orlando opened in 1986 as an 891-room luxury hotel. A $440 million renovation and expansion that was completed three years ago added a 750-room tower, another ballroom, more exhibit and meeting space, a 2,100-space parking garage, a spa, pools, restaurants and other amenities. It now has 1,641 guest rooms, 193 suites and 300,000 square feet of flexible meeting space with more than 150,000 square feet on one floor.
Forest City Sells Pittsburgh Complex for $135M
Forest City Enterprises Inc. and its partner Jos. L. Muscarelle Inc. have completed the sale of the Liberty Center complex in Pittsburgh to a subsidiary of Starwood Capital Group. The property includes the 27-story Federated Investors office tower and the 616-room Westin Convention Center Hotel. With a gross sales price of $135 million, Forest City was able to generate net proceeds of approximately $30 million for its share. The property was owned in a 50/50 partnership prior to the sale. The hotel will continue to be operated as a Westin brand under a long-term management agreement with Starwood Hotels & Resorts Worldwide (not affiliated with Starwood Capital), which currently manages the hotel. CBRE Group Inc. will manage the office building.
Tempe Set to See New Mixed-Use Development
USA Place L.L.C. has been picked to develop a major mixed-use project in downtown Tempe, Ariz. The development will feature a 330-room Omni Hotel, a 30,000-square-foot conference center, the new national headquarters and training center for USA Basketball, a 4,500-seat event center, 500 luxury apartments, 160,000 square feet of retail and as much as 200,000 square feet of office space. The principals of USA Place L.L.C. include Susan Eastridge, CEO of Concord Eastridge; Michael Hallmark, principal of Future Cities; and Robert Harris, CEO of Harris Sports & Entertainment. The mixed-use plan created by Future Cities emphasizes walkable urban neighborhoods with four- and five-story residential units above retail shops, restaurants and services. The full-service Omni Hotel will be Tempe’s first four-diamond hotel.
Wood Partners Begins Two Maryland Projects
Towson, Md., is set to see 470 new apartment units, thanks to two joint ventures involving Wood Partners. The two phases will replace a 70-year-old, 150-unit community with two four-story communities. The Winthrop, developed by Chesapeake Realty Partners and Wood Partners, will consist of 295 units. It is scheduled to commence leasing in May 2014. A second phase, developed by Wood Partners and Taylor Property Group, will feature 175 units. The assets will be operated separately, though they feature complementary designs.
NYRR Buys SL Green Office for $220M
American Realty Capital New York Recovery REIT Inc. (NYRR) has completed its acquisition of 333 W. 34th St. from SL Green Realty Corp. for $220 million. The 10-story Manhattan office property contains of approximately 347,000 rentable square feet that is 100 percent leased to four tenants: The Segal Co. (Eastern States) Inc.; The Metropolitan Transportation Authority; Godiva Chocolatier Inc.; and Sam Ash New York Megastores L.L.C. With the addition of the asset, ARC New York Recovery REIT Inc. currently operates a $775 million portfolio.
Behringer Harvard, TCR Break Ground in Central Dallas
Behringer Harvard Multifamily REIT I Inc. and Trammell Crow Residential have broken ground on The Alexan. The 10-story apartment community is located on Goat Hill, just northwest of downtown Dallas. The development is the result of a joint venture between Behringer Harvard Multifamily REIT I Inc., the Crow Family and Trammell Crow Residential. Behringer Harvard is the general partner, the Crow Family is a co-investor and Trammell Crow Residential is the developer. The 365-unit asset should be complete in two years. Amenities will include two luxury swimming pools, retail space on the ground floor and outdoor patio space.
W.P. Carey Closes $100M Sale-Leaseback in Austin
Two W.P. Carey REIT affiliates, CPA 17 – Global and CPA 18 – Global, have acquired the State Farm Operations Center in Austin, Texas, for $110 million. The sale-leaseback transaction allowed the REIT to land its first Class A office property in the city. It is also the first investment made by CPA 18 – Global. Both of the REITs are publicly held and non-traded. The 448,898-square-foot facility, located on 83.5 acres in the Amber Oaks Corporate Center, has been State Farm’s operations center in Austin since 1994. The initial term of the lease is 15 years, with two five-year options to renew. Officials of W.P. Carey cited State Farm’s strong credit rating as one reason for purchasing the Austin operations center.
Harbor Group Sells Chicago Office Tower to Beacon for $113M
An affiliate of Harbor Group International L.L.C. has completed the $112.5 million sale of 300 S. Wacker Drive, a 35-story, 512,400-square-foot office building in downtown Chicago. The asset was picked up by an affiliate of Beacon Capital Partners. Harbor Group International continues to own nearly 2 million square feet of Class A office property in the Windy City. Its other downtown Chicago assets include One South Wacker, a 40-story, 1.2 million-square-foot office building, and 2 N. LaSalle, a 715,000-square-foot office tower. Jones Lang LaSalle Inc. marketed 300 S. Wacker Drive for Harbor Group International. The property was built in 1971 and underwent heavy renovations in the early 1990s. Harbor Group International bought the building in August 2006 for $91.5 million.