TIAA-CREF has teamed with Norges Bank Investment Management to pay $307 million, or roughly $788.69/sf, for Republic Square I, a 389,252-square-foot office property in downtown Washington, D.C. The venture is assuming $185 million of debt that was provided two years ago by a group of lenders led by Morgan Stanley.
Behringer Harvard Opportunity REIT I Inc. is now in its disposition phase and is putting a number of its properties up for sale. It's looking to sell three properties in the short term and would like to have its entire portfolio liquidated within the next two to three years. The company carries its assets on its balance sheet at a value of roughly $315 million.
Goldman Sachs Mortgage Co. has provided $345 million of financing against a portfolio of nine office properties in downtown Seattle with 1.6 million square feet owned by Martin Selig Real Estate. A big chunk of the loan was used to defease a $242 million loan that was securitized through JPMorgan Chase Commercial Mortgage Securities Corp., 2005-LDP5.
A venture of Moore Associates and Velocis Partners is in the market to sell two office properties with 174,797 square feet in suburban Austin, Texas. The two properties, Arboretum Atrium and Las Cimas I, are being offered through Transwestern.
Blue Vista Capital Management is seeking $400 million for a fund that would, like its predecessor, specialize in providing the so-called sponsor equity that is needed by operating partners to complete the purchase of properties in deals with larger institutional partners. The fund is aiming for returns of 17 percent to 19 percent.
Franklin Street Properties Corp. has struck a deal to buy Two Ravinia Drive, a 407,854-square-foot office property in Atlanta's Central Perimeter. The REIT is said to be paying a price in the high $70 million range. It's buying the 17-story building from a venture of the Teacher Retirement System of Texas and Parkway Properties Inc., in a deal arranged by Cushman & Wakefield.
Madison International Realty is seeking to raise $950 million for an investment fund that it has started raising, less than a year after it closed marketing for its $825 million predecessor vehicle. That quick turnaround runs counter to prevailing wisdom that investment managers have had to slow down their capital-raising because of the challenges they're facing in finding suitable investments.
Two Harbors Investment Corp., a mortgage REIT sponsored by Pine River Capital Management that last year started a move into the commercial mortgage business, is looking to write a broad range of floating-rate debt instruments. It will write senior and mezzanine loans, B-notes and preferred equity in deals of between $10 million and $100 million apiece.
CBRE Global Investors has struck a deal to pay about $200 million for United Plaza and 1650 Arch St., two office properties with a combined 1.2 million square feet in downtown Philadelphia. It's buying the buildings from Tier REIT Inc. The Dallas REIT had carried the two properties on its balance sheet at a value of $191.2 million.
The Boston investment manager has purchased three apartment properites with 691 units from Worthing Cos. for $153 million. The properties were developed within the past eight years and are 96 percent occupied. Rents average $1,611/unit
West Coast Port Slowdown and Industrial REITs After nine months of labor negotiations and worsening cargo congestion at West Coast Ports, U.S. Labor Secretary Thomas Perez stepped in this week to help broker a deal between the union and shippers. The work slowdown is affecting the nation’s supply chain. Honda has reported a production slowdown because of parts....
New REITs Increase Investor Choices in 2015 Three REIT IPOs in as many weeks could indicate a strong year ahead for new REIT formation. Robust REIT returns during 2014 created momentum for IPO activity. In addition, the market’s favorable reception of the widely-watched Paramount REIT (PGRE) and STORE Capital (STOR) IPOs in late 2014 has encouraged companies to....
REITs Start 2015 Strong One month in to 2015, REITs continue to outperform the broader markets. During January, the FTSE NAREIT All REIT Index total return measured 5.59 percent, compared to -3.00 percent for the S&P 500, -3.69 percent for the DJIA, and -2.13 percent for the NASDAQ. REITs are attractive to investors for a...