September – Briefs/Sales & Development

Macerich Taps Developers for $600M Mixed-Use Suburban D.C. Project; Blackstone Buys 15 Retail Centers from Regency for $321M; Trammell Crow Lands Florida Development Contract; The Drew Co. Begins $120M Mixed-Use Asset in Boston; Pebblebrook Acquires Two Pacific Northwest Hotels; Vornado Picks Up $132M Miami Retail Center; Harrison Street Completes $77.9M Healthcare Disposition; SL Green Halves Interest in 717 Fifth Ave. to JV Partner Jeff Sutton.

Macerich Taps Developers for $600M Mixed-Use Suburban D.C. Project

Macerich, co-owner and master developer of the 2 million-square-foot Tysons Corner Center regional shopping mall in McLean, Va., has taken a big step forward in the $600 million expansion of the property with the recent selection of a trio of developers. Hines, Kettler and Woodbine Development Corp. have come aboard to spearhead projects that will transform the asset, which is located 15 miles outside of Washington, D.C., into a mixed-use destination.

Macerich teamed up with Alaska Permanent Fund Corp.’s partner in the ownership of Tyson Corner Center in 2005, and soon after completed the expansion of the 1960s-era mall with a 362,000-square-foot, three-level addition. The newest planned redevelopment will certainly mix things up, with the addition of office, residential and hotel assets.

Hines will head the development of Tysons Tower, a 500,000-square-foot office property. Kettler will oversee the development of a residential high-rise encompassing 450 units. Woodbine has agreed to build a high-end hotel with 300 guestrooms. The multi-faceted expansion is on track for completion in 2014.

Blackstone Buys 15 Retail Centers from Regency for $321M

Regency Centers Corp. has agreed to sell 15 shopping centers in seven states to an affiliate of Blackstone Real Estate Partners VII for $321 million. The 2.1 million-square-foot portfolio is 90.3 percent leased and features prominent retail chains like Publix, Kroger, Walgreens, Home Depot and Lowe’s. The deal, which is expected to close July 25, is structured to allow Regency Centers to keep a preferred equity investment of about $47.5 million. The portfolio, which had no debt, was wholly owned by Regency, a company that has sold $3 billion in assets since 2001.

Trammell Crow Lands Florida Development Contract

Trammell Crow Co. has been granted a five-year agreement to serve as the master developer for the city of Lauderdale Lakes’ 22-acre Commerce Park Project. The Commerce Park site can accommodate as much as 325,000 square feet of Class A industrial, office or retail space. Senior managing director Bob Abberger and vice president Court Corbino will lead the Trammell Crow development team. CBRE Group Inc.’s Ft. Lauderdale office will handle the project’s brokerage and marketing activities.

The Drew Co. Begins $120M Mixed-Use Asset in Boston

The Drew Co. has broken ground on Waterside Place, a 20-story, 350,000-square-foot luxury residential tower in Boston’s Innovation District. The $120 million mixed-use project will feature 236 rental units, 140 above-grade parking spaces and 10,000 square feet of retail space. The project is being built by Suffolk Construction and is designed to achieve LEED Silver certification.

Pebblebrook Acquires Two Pacific Northwest Hotels

Pebblebrook Hotel Trust has acquired the Hotel Vintage Park for $32.5 million and the Hotel Vintage Plaza for $30.5 million. Hotel Vintage Park has 124 rooms and is located in Seattle’s retail and financial district. Hotel Vintage Plaza has 117 rooms and is located in downtown Portland, Ore. Both assets will continue to be managed by Kimpton Hotels & Restaurants. The purchases bring Pebblebrook’s portfolio to 23 properties, a figure that comprises $1.8 billion of invested capital since the company completed its IPO in December 2009.

Vornado Picks Up $132M Miami Retail Center

Nine years after shelling out $43 million to acquire Lincoln Center, a 167,000-square-foot retail property in Miami Beach, joint venture partners RFR Holding L.L.C. and Greenstreet Real Estate Partners L.P. have sold the trophy asset to Vornado for $132 million. Holliday Fenoglio Fowler L.P. orchestrated the disposition of the 13-year-old property. Approximately 96 percent of the center’s 127,000 square feet of leasable space is occupied. The asset is anchored by a Regal Cinema multiplex.

Harrison Street Completes $77.9M Healthcare Disposition

CBRE Group Inc. has arranged the sale of a 315,179-square-foot medical office portfolio comprising 10 buildings priced at $77.9 million. The portfolio is owned by two separate joint ventures formed by Harrison Street Real Estate Capital. The offering was purchased by a healthcare REIT based in California. The assets are located in Alabama, Florida, Hawaii, Indiana, New Mexico, South Carolina and Texas. More than 50 percent of the portfolio is located on campus, while the remaining facilities serve as outpatient centers for nearby hospitals.

SL Green Halves Interest in 717 Fifth Ave. to JV Partner Jeff Sutton

In a transaction that provided $85 million in net cash proceeds, SL Green Realty Corp. has restructured and recapitalized its joint venture at 717 Fifth Ave. in New York City. The company sold half of its interest to joint venture partner Jeff Sutton, retaining a 10.9 percent stake in the retail condo property at a price that values the asset at $618 million, or $5,015 per square foot. The valuation reflects a 4.9 percent cap rate on in-place net operating income. The venture has also received $590 million of new financing in the form of a $300 million, 10-year, 4.45 percent fixed-rate mortgage loan and a $90 million, 12-year, 9 percent fixed-rate mezzanine loan.