September 2014 – Briefs/Sales & Development
- Aug 27, 2014
KBS Sells Chicago Office to Irvine Co. for $850M
In what is the largest single-building office transaction in Chicago history, KBS REIT II has sold its 300 N. LaSalle Building to Irvine Company for $850 million. The deal breaks the previous record set by Sears/Willis Tower, which traded for $841 million in 2004. KBS REIT II bought the 1.3 million-square-foot tower back in 2010. The 2009-built property includes Chicago Cut Steakhouse and a waterfront café and plaza. HFF brokered the sale.
Goodman Birtcher Lands Approval for $350M N.J. Logistics Center
Australia’s largest industrial property group has gained approval for the development of a $350 million logistics center in Linden, N.J. The proposed project is part of Goodman Birtcher’s recently announced $1.4 billion, 15 million-square-foot development pipeline in the key U.S. logistics markets of California, New Jersey and Pennsylvania. This particular deal—known aptly as Goodman Logistics Center Linden— will redevelop a 143 acre site into a 2.8 million-square-foot logistics center with five high-grade distribution warehouses will be delivered in three phases.
Loews Buys The InterContinental Chicago O’Hare
Loews Hotels & Resorts has acquired its second property in Chicago and its third in the Midwest with the purchase of The InterContinental Chicago O’Hare. The 556-room property is located less than two miles from O’Hare Airport and 13 miles from downtown Chicago. It features three restaurants and bars, and more than 53,000 square feet of meeting and event space. In June, the company announced that it was buying the Graves 601 Hotel in Minneapolis. Loews Chicago, a 400-room new development, will debut in downtown Chicago in February 2015.
Clarion Grabs Playa Vista Office Complex from ASB
Clarion Partners has acquired Latitude 34, a 301,642-square-foot office complex in the Playa Vista area of Los Angeles, from ASB Real Estate Investments. CBRE represented ASB’s Allegiance Real Estate Fund, a $3.5 billion core vehicle, in the transaction. The two-building, LEED Gold property was developed back in 2010 by ASB and Lincoln Properties. The five-story west building has 100,685 square feet, and the six-story east building totals 193,806 square feet.
AvalonBay Sells Massachusetts Asset to The DSF Group
A 433-unit multi-family community in Danvers, Mass., known as Avalon Danvers has traded hands for $108.5 million—the highest price for a single-property apartment transaction in Massachusetts thus far in 2014. Marcus & Millichap’s IPA division represented AvalonBay Communities Inc. in the sale. The DSF Group bought the property, which is located on 36.7 acres at 1101 Kirkbridge Dr. in Danvers near U.S. Route 1 and I-95.
New York REIT to Acquire Twitter HQ in Manhattan
New York REIT Inc. has entered into a purchase and sale agreement to acquire Twitter’s 282,000-square-foot East Coast headquarters in Manhattan for a reported $335 million from Savanna. Located at 245-249 W. 17th St. in the Chelsea neighborhood, the property consists of a 12-story office tower and an adjacent six-story mixed-use building. Twitter has a 214,765-square-foot lease that expires in 2025. Additionally, Room & Board Inc. occupies the retail portion of the building. Flywheel Sports Inc. is also a tenant. Constructed in 1902 and 1909, the buildings underwent $29 million in renovations after Savanna purchased them in 2012.
Blackstone Sells Oceanfront Hotel/Marina in Ft. Lauderdale
Fort Lauderdale’s lodging market is hot and shows no signs of slowing down as it notched another high volume sale with Blackstone’s disposition of Bahia Mar Fort Lauderdale Beach. The 39-acre ocean front complex was picked up by TRR Bahia Mar L.L.C., a partnership between Tate Capital L.L.C., Rok Acquisitions L.L.C., Rialto Capital and RCI Marine Inc. The property hosts a 296-key Doubletree hotel that features tennis courts, an outdoor pool and development rights for 12.5 additional acres. Also on the site is a 245-slip marina that is one of the largest in the country and home to the Fort Lauderdale International Boat show, the largest boat show in the world.
Harbor Group Sells 415 KSF Times Square Office Tower for $250M
Harbor Group International has sold 1412 Broadway, a 24-story, 415,135-square-foot office tower in Manhattan, for $250 million, it was announced Monday by HGI and by CBRE, which represented HGI in the transaction. The buyer was various entities controlled by Isaac Chetrit. Built in 1926, the building is at the northeast corner of Broadway and 39th Street. HGI purchased the property for $150 million in December 2010 and subsequently completed a $10 million renovation program that included a renovation of the lobby, entry façade, corridors and restrooms, as well as new windows and infrastructure upgrades. Along the way, the property’s occupancy increased from 84 percent in 2010 to its current 97 percent. Tenants include Jones New York, One Step Up, Escada USA, OuterStuff, Securitas Security Services and Provident Bank.