JANUARY 22, 2014
14 TOP OFFICE BROKERS
19 TOP OFFICE DEALS IN 2013
2 Beacon Shows SF Offices With Upside
3 Chalme Shops 2nd Tower in Lower NY
3 Related Strikes Big NY Rental Deal
3 Three Adjacent NY Buildings Available
3 FelCor Lists Value-Added Calif. Hotel
4 JBG Planning 9th High-Yield Fund
4 Retail Portfolio Up for Grabs
6 ‘Micro’ Rental Project Pitched in SF
6 REIT Lists Office Bundle in Northeast
8 Rentals for Sale in Hot Denver Market
10 Upper Manhattan Apartments on Block
10 Hotel Near Florida Outlet Mall Listed
10 Warehouse, Parcel Near Phila. for Sale
10 Expanded SC Retail Center Available
16 HFF Lifts Its Share of Big Office Deals
THE GRAPEVINE
Veteran capital-raiser Douglas Doughty
has joined J.P. Morgan Asset Management
as a managing director in New York.
He started this month as global head of
business development and client strategy
for the investment manager’s $68 billion
real-assets platform, including real estate.
Doughty spent the past few years at CIM
Group, a Los Angeles fund operator. Before
that, he had capital-raising positions at
Rialto Capital of Miami and M3 Capital of
New York.
Jones Lang LaSalle has picked up two
multi-family specialists in Dallas. Jorg
See GRAPEVINE on Back Page
Office Sales Rise 20%; Eastdil Stays on Top
Eastdil Secured retained its title as the most-active broker of large office properties last year, as overall sales volume increased at a healthy pace despite declines in
some top markets.
Some $71.9 billion of large office properties traded hands, up 20% from $59.8
billion in 2012, according to Real Estate Alert’s Deal Database, which tracks transactions of $25 million and up. Market pros say the growth rate, down slightly from
24% in 2012, was constrained by a shortage of high-caliber listings in major markets, a trend they expect to persist this year.
Eastdil had the largest sales volume by far, $21.6 billion, up from $17 billion in
2012. It kept its crown by capturing first place in the three busiest markets: New
York, the Los Angeles area and San Jose/Silicon Valley. Its share of brokered trades
was down only slightly, to 33% from 33.9% (see Rankings on Pages 14-19).
Runner-up CBRE logged $15.6 billion of activity, up from $11.3 billion the year
See OFFICE on Page 15
Colliers Taps Ward as Capital-Markets Chief
Colliers International has hired industry veteran Brian Ward for the new position
of president of capital-markets operations in the U.S., Canada and Latin America.
Ward was previously national director of capital markets for the Institutional
Property Advisors platform at Marcus & Millichap. His position includes the responsibilities of former U.S. capital-markets chief Warren Dahlstrom, who departed last
January following a two-year stint.
The hiring is the latest move by Colliers to appoint capital-markets executives
with multi-national duties in order to serve cross-border investors. Last year,
Richard Divall was tapped as head of capital markets in Europe, Middle East and
Africa, and Terence Tang was hired as managing director of Asian capital markets
and investment services.
“Real estate is becoming increasingly global,” Ward said. “The flow of capital
across borders is unlike any other time we’ve seen.”
Ward, who started last week, oversees about 300 debt and equity specialists in
See COLLIERS on Page 6
AvalonBay Pitches Core NY Rental Building
An AvalonBay Communities partnership is teeing up an apartment property on
Manhattan’s Lower East Side that could attracts bids of $400 million.
The 361-unit Avalon Chrystie Place, which was built in 2005, is 95% occupied. At
the estimated value of $1.1 million/unit, the initial annual yield would be about 4%.
Although the offering is likely to appeal to core investors, a buyer could upgrade the
apartment interiors in order to raise rents and boost the return.
AvalonBay, a REIT in Arlington, Va., and its partner, J.P. Morgan Asset
Management, have given the listing to HFF.
The 14-story complex is at 229 Chrystie Street, on the southwest corner of
Houston Street. The site, next to a subway stop, is within walking distance of SoHo,
Greenwich Village, Little Italy and Chinatown.
There is 72,000 square feet of retail space on the street level, most of which is
See CORE on Page 6
January 22, 2014
2
Real Estate
ALERT
Beacon Shows SF Offices With Upside
Beacon Capital is marketing a San Francisco office building
with upside potential that is valued at more than $200 million.
The 388,000-square-foot property, at 221 Main Street in the
surging South Financial District, is 91% leased. Though the
building is being pitched as a core investment, a buyer could
boost the return by filling vacant space and raising rents as
leases roll over. The in-place rents are as much as 30% below
the market rate for similar Class-A properties.
Bids are expected to reach around $550/sf, or $213 million.
Eastdil Secured has the marketing assignment.
The 16-story property, which includes a 110-car underground garage that throws off additional revenue, was developed in 1974. Beacon, a Boston investment manager, acquired
it in 2011 from the Booth family of San Francisco for $131 million, or $399/sf.
Since then, Beacon has poured $21 million into improvements, achieving a LEED platinum designation. The renovation
included an upgrade of the lobby and elevators, as well as the
replacement of cooling towers, boilers and chillers. Also, ceilings were raised and floor plans were opened up to make office
suites more appealing to technology companies, which favor the
South Financial District.
Tenants include a mix of hightech companies and professionalservices firms, such as DocuSign,
Function One, Phoenix Investment
Management and Roux Associates.
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San Francisco’s office fundamentals remain among the country’s strongest, with an overall
occupancy rate of 93.3%, according to Eastdil. Sales have slowed
in the last year as many of the
choicest office properties have
already traded hands this cycle.
The only other significant
office property currently on the
market is the 379,000-sf building
at 55 Second Street. A partnership between Hines and Sumitomo
Real Estate began shopping that
25-story tower around the beginning of the year, also via Eastdil. It
is likely to trade for around $290
million, or $765/sf.
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January 22, 2014
Real Estate
3
ALERT
Chalme Shops 2nd Tower in Lower NY
A joint venture led by investor Raymond Chalme has listed
a Lower Manhattan office tower that is across the street from
another building he’s marketing.
In the latest offering, Chalme and Heyman Properties of New
York have put the 780,000-square-foot building at 61 Broadway
on the market via Jones Lang LaSalle. The well-leased property
is expected to attract bids of about $450/sf, or $350 million,
which would result in a capitalization rate of some 4.5%. Marketing materials distributed last week tout near-term lease rollover as providing an opportunity to boosts rents and the return.
The property, at Exchange Alley, is across from the 350,000sf office building at 55 Broadway, which Chalme owns solely.
That property, known as One Exchange Plaza, went on the
block last month. Its value is pegged at about $170 million, or
$485/sf. The higher per-foot valuation stems from the potential to boost revenues by converting some offices to retail space.
Jones Lang also has that listing.
The 33-story building at 61 Broadway is 94% leased. The
tenants include Corporation for Supporting Housing (36,000 sf
through 2023), Home Insurance Co. (24,000 sf), Leukemia and
Lymphoma Society (24,000 sf through 2024), Artnet Worldwide
(19,000 sf), Gemini Systems (15,000 sf until August), law
firm Godosky & Gentile (14,000 sf through 2019) and law firm
Cichanowicz Callan (11,000 sf until September 2015), according
to CoStar. Trinity Place Department Store occupies 26,000 sf of
street-level retail space.
Marketing materials provided to investors project that a
buyer could increase the net operating income by 50% within
five years by raising rents as leases roll over.
The building, which is a few blocks south of the World Trade
Center, was constructed in 1916 and underwent a $14 million
renovation in 1988, including overhauls of the lobby, elevators,
windows and mechanical systems. Chalme, who operates via
Broad Street Partners of New York, teamed up with Heyman in
2004 to buy 61 Broadway from Crown Properties of New York.
Crown, headed by Davar Rad, bought the building in 1997 from
Metropolitan Life for $58 million. In 2002, Crown completed a
renovation of common areas, added a conference center and
replaced the roof and cooling towers.
Related Strikes Big NY Rental Deal
In one of the largest apartment trades ever in New York’s
outer boroughs, Related Cos. has agreed to buy a sprawling
Bronx portfolio for roughly $250 million.
Related, a New York fund shop and developer, will acquire
the 35 buildings from an unidentified local investor represented by Newmark Grubb. The portfolio encompasses some
2,000 units, putting the per-unit cost at $125,000.
Related operates two funds: the $825 million Related Recovery
Fund, which held a final close in 2011, and the RFM-NYC Retirement Systems Sandy Fund, which completed raising $310 million
of equity last year. The buzz is that Related will make the portfolio
purchase via one of the funds, but it’s unclear which one.
The transaction would rank among the 10 largest apartment
trades ever in New York’s outer boroughs.
Three Adjacent NY Buildings Available
Related Cos. is marketing three adjacent office buildings in
Midtown Manhattan that it acquired just two years ago.
The properties, on West 25th Street between 10th and 11th
Avenues, encompass 197,000 square feet. They are being offered
as a package and could attract bids of roughly $800/sf, or $160
million. At that price, the buyer’s initial annual yield would be
roughly 5%. CBRE is advising Related, a New York fund manager and developer led by billionaire Steven Ross.
The buildings, at 511, 521-531 and 541 West 25th Street, are
93% leased, according to CoStar. Some of the space is occupied
by retail tenants and art galleries. Leases on nearly half of the
space roll over within four years. The pitch is that a buyer could
boost its return by adding retail space at the street level, as well
as rooftop amenities.
The buildings were renovated in 2001. Related bought them
in early 2012 for $93 million, or $477/sf, from Pembrook Capital
of New York and made additional upgrades. Some floors are
interconnected across the buildings.
The subsequent spike in valuation is tied to both the building’s increased occupancy rate and rising investor interest in
the surrounding Midtown South submarket. The buildings
are benefiting from their proximity to the popular High Line
elevated park, which has helped lift retail rents in the Chelsea,
Midtown South and Meatpacking District submarkets.
The tenants include fashion showroom CD Network (10,000
sf through 2020), Whitehall Business Archives (6,000 sf),
Driscoll Babcock Galleries and Robert Steele Gallery. The largest office tenant is retailer Target, which occupies 23,000 sf as
its New York headquarters. That lease was signed last year.
FelCor Lists Value-Added Calif. Hotel
FelCor Lodging is pitching a coastal hotel in Southern California to value-added investors.
The 196-room DoubleTree Suites, in Dana Point, is expected
to trade for about $33 million, or $168,000/room. It is being
offered unencumbered by a management contract. FelCor, a
hotel REIT in Irving, Texas, has tapped HFF as its broker.
A buyer could boost revenues by completing an extensive renovation, which should lead to higher occupancy and room rates.
Revenue per room at hotels in the surrounding South Orange
County grew 7% during the first 10 months of last year, versus
the same period a year earlier, according to marketing materials.
The full-service DoubleTree is on a 1.5-acre parcel at 34402
Pacific Coast Highway, at the intersection of the Santa Ana
Freeway. The site is a block from Doheny Beach, a popular
surfing locale that is part of a state park. Zoning rules curb the
potential for hotel construction in the vicinity.
The four-story hotel has 11,500 square feet of meeting space,
a restaurant, a rooftop bar, a pool and a fitness center. The units,
all suites, average 350 sf. Half of the units have ocean views.
January 22, 2014
Real Estate
4
ALERT
JBG Planning 9th High-Yield Fund
THE NEXT GENERATION
OF REAL ESTATE
LEADERSHIP
Welcome to the new
CBRE San Francisco.
The CAC Group and CBRE
represent the best of San Francisco.
From the city’s landmark buildings
to its most iconic brands, these
two San Francisco-bred firms have
come together to form the market’s
leading real estate services platform.
CAC brings unprecedented local
know-how, having completed
some of the city’s most significant
transactions and managing many
of its finest buildings, while CBRE
delivers access to the world’s most
influential companies and markets.
Together, we are San Francisco’s
unmatched local and global
authority on commercial real estate.
For more information on the new
CBRE San Francisco, please contact:
Mike Smith +1 415 772 0499
Bill Cumbelich +1 415 291 8882
cbre.com/sanfranciscodt
JBG Cos. is paving the way to market its ninth opportunity
fund.
The vehicle, JBG Investment Fund 9, will likely have an
equity target of $700 million, with a ceiling of up to $750 million. It will follow up a $752 million fund that had its final close
in 2011 and is nearly three-quarters invested.
The fund series shoots for a 16% return by acquiring and
developing properties of mixed types in the Washington metropolitan area.
The Chevy Chase, Md., fund operator solicits capital from
pensions, endowments, foundations, fund-of-fund operators
and others via an in-house marketing team. Investors in prior
JBG funds include California Endowment, Carnegie Corp., Conrad
N. Hilton Foundation, David and Lucile Packard Foundation, Duke
Faculty & Staff Retirement, Gordon and Betty Moore Foundation,
Hillman Family Foundations and multi-manager fund operator
TIFF, according to Preqin.
JBG’s fund series is overseen by an investment committee that includes managing member Michael Glosserman and
managing directors James Iker and Matt Kelly.
The firm’s portfolio encompasses 10.5 million square feet of
office space, 2.9 million sf of retail space, 7,500 residential units
and 5,000 hotel rooms. JBG also has a robust development
pipeline. The shop, founded in 1960 as a developer, launched
its first fund in 1999. It raised roughly $3 billion of equity for
its first eight vehicles.
62 Retail Properties Up for Grabs
A net-lease player is marketing a fully occupied retail portfolio valued at about $90 million.
The 62 standalone properties, in 22 states, encompass
339,000 square feet and are being offered only as a package. At
the estimated value, the initial annual yield would be 6.5%. The
owner, Brauvin Net Capital of Chicago, has given the listing to
Jones Lang LaSalle.
There are 24 tenants, led by 7-Eleven, which occupies 11
stores under leases with remaining terms of 14.5 years and
annual rent bumps starting in 2019. The rent roll also includes
Jiffy Lube (10 stores), child care center LaPetite Academy (five)
and Chuck E. Cheese’s (four).
The marketing campaign is touting the stability of the properties, which have a weighted average remaining lease term
of eight years. Three-quarters of the portfolio’s net operating
income is produced by investment-grade retailers, and tenants
are spread across seven retail categories, further mitigating
risk. Most of the leases are on a triple-net basis, and almost all
have rent bumps.
On average, each outlet encompasses 5,500 sf and is 23 years
old. The properties are concentrated in six states: Alaska, Illinois, North Carolina, Oklahoma, Pennsylvania and West Virginia. All are along busy retail corridors, with an average of
19,000 vehicles passing each property daily.
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January 22, 2014
Real Estate
6
ALERT
‘Micro’ Rental Project Pitched in SF
A developer that specializes in energy-efficient “microapartment” buildings is looking to pre-sell a project in San
Francisco’s trendy South of Market neighborhood.
The 160-unit Panoramic is under construction at 1321 Mission Street. Developer Panoramic Interests of Berkeley, Calif.,
wants to line up a sale that would close when the property gains
its certificate of occupancy, expected in August 2015. Bids are
expected to come in around $80 million, or $500,000/unit.
CBRE is handling the marketing.
Panoramic Interests has made a name for itself designing
and building small apartments that make efficient use of space
and energy, aimed at students and young professionals. The
current project would have a mix of studios and one- to threebedroom apartments, with the smallest units measuring about
275 square feet.
The Panoramic is 50% pre-leased to the California College
of Arts, which will house students there, lessening the lease-up
work for a buyer.
The 11-story building’s environmentally conscious design
includes large windows for natural lighting and ventilation,
solar-powered water heating and recycled content in construction materials. Amenities will include a roof deck with landscaping and a cafe on the first floor. The property will have just
one parking space — reserved for a City Carshare vehicle — but
provide bicycle storage.
The site is just a block from Twitter’s world headquarters,
two blocks from light rail and bus stations and a short walk
from the waterfront. South of Market, or “SoMa,” has become
the city’s hottest neighborhood for media and technology companies.
San Francisco’s rental market, driven by soaring employment
in the technology sector, remains one of the nation’s strongest.
On average, rents are 16% higher now than at the peak of the
dot-com boom in 2000, according to Marcus & Millichap. That’s
set off a building boom, with 3,400 apartments coming on
line last year and 2,800 expected in 2014. With the increased
supply, the occupancy rate is expected to slip a bit this year, to
95.9%.
REIT Lists Office Bundle in Northeast
CommonWealth REIT is marketing a 1.6 million-square-foot
office portfolio in the Northeast that is expected to attract bids
of about $100 million from value-add investors.
The package encompasses 16 office properties and one
173,000-sf industrial building in suburbs of Boston, New York,
Hartford and Philadelphia. Broker Cushman & Wakefield is
pitching the offering as a portfolio, but will consider bids on
individual properties.
At the estimated value of $63/sf, the initial annual yield would
be about 9.3%. Marketing projections suggest a buyer could
boost the occupancy rate from the current 66% to 90% within
three years, lifting the net operating income to $17.1 million
from $9.3 million.
CommonWealth has been seeking to prune its portfolio and
shift its focus to high-quality office buildings in central business districts. The Newton, Mass., REIT sold $216 million of
properties last year, according to Real Capital Analytics.
The portfolio contains a mix of Class-A and -B office properties. Six are in Massachusetts: 859 Willard Street and 19 Granite Street in Quincy; 575 West Street and 20 Cabot Boulevard
in Mansfield; and 440 and 470 Myles Standish Boulevard in
Taunton.
There are four office buildings in Wallingford, Conn.: 22-28
and 29-33 Village Lane, 35 Thorpe Avenue and 101 Barnes
Industrial Park North. The portfolio’s lone industrial property
is also there, at 15 Sterling Drive.
There are two office properties on New York’s Long Island,
at 1601 Veterans Memorial Highway in Islandia and Two
Corporate Center Drive in Melville, and one in Northern
New Jersey, at 7&9 Vreeland Road in Florham Park. The
remaining three are in Voorhees, N.J., about 15 miles from
Philadelphia, at 333 and 400 Laurel Oak Road and 1000
Voorhees Drive.
Colliers ... From Page 1
the U.S., Canada and Latin America. He is based at Colliers’
Seattle headquarters.
Ward will initially focus on the U.S., continuing efforts to
build out a national property and loan brokerage platform
geared towards institutional investors. That will include hiring
property-sales and loan specialists in top markets. Dahlstrom
had added brokerage teams in several key cities.
The initiative stems from Colliers’ ambition to become one
of the top three full-service real estate brokerage firms in the
U.S. That mandate was given by FirstService, a Toronto real
estate-services firm that acquired Colliers in 2010.
Ward joined Marcus & Millichap in 2011 and took over
capital markets at Institutional Property Advisors the following year. Marcus & Millichap established that platform in 2010
to increase its volume of large listings from institutional clients. Before joining the brokerage, Ward was chief investment
officer at Hendricks-Berkadia of Phoenix and chief executive of
Orion Residential and its successor company, Aspen Residential
of Deerfield, Ill.
Core ... From Page 1
leased to a Whole Foods supermarket until 2028.
A buyer would have to assume a $117 million floating-rate
Fannie Mae mortgage, which could be prepaid or augmented
with subordinate debt.
Eighty percent of the units, or 289, command market rents,
while the remaining 72 are regulated under New York City rent
guidelines. The units range in size from studios to two bedrooms. The amenities include a fitness center, a rooftop deck
and 24-hour concierge service.
EXPERIENCE EXPERTISE EXECUTION
■
■
Institutional Property Advisors
Institutional Leadership Series
2014
Na tion al
Ap art me
REAL EST
t
nt Re por
ATE INVE
STMENT
RESEAR
CH
HES
E. HUG
n
President
Corporatio
Capital
illichap
m
310
illichap.co
@marcusm
Leading the Discussion on Apartment Industry Trends and Opportunities
Institutional Property Advisors’ series of Apartment Market Outlook Webcasts
features the industry’s leading minds to identify important trends and provide
insightful commentary and market forecasts. Based on our deep research
experience and market knowledge, investors have come to rely on IPA as a
trusted advisor, and for good reason.
2014 National Apartment Report
Recently Featured Speakers
Douglas M. Bibby
President
National Multi Housing Council
Sean J. Breslin
Executive Vice President —
Investments and Asset Management
AvalonBay Communities, Inc.
Brian T. Murdy
National Director
Institutional Property Advisors
John Chang
First Vice President,
Research Services
Past Industry Leaders in the Series:
Thomas W. Toomey
President, CEO
UDR, Inc.
Alan W. George
Executive Vice President,
Chief Investment Officer
Equity Residential
Richard J. Campo
Chairman, CEO
Camden Property Trust
Clyde Holland
Chairman, CEO
Holland Partner Group
NOW AVAILABLE:
Download our 2014 National Apartment Report and see
a replay of our latest webcast at www.IPAusa.com
www.IPAusa.com
Constance B. Moore
President, CEO
BRE Properties, Inc.
January 22, 2014
8
Real Estate
ALERT
Rentals for Sale in Hot Denver Market
An Angelo, Gordon & Co. partnership is seeking $31.3 million for an apartment complex in Denver, whose multi-family
market ranks as one of the strongest in the county.
The 418-unit property, at 11100 East Dartmouth Avenue,
is about 95% occupied. The asking price equals $75,000/unit.
Jones Lang LaSalle has the listing.
The garden-style complex was built in 1974 and underwent
a major renovation in 2004. Angelo Gordon, a New York investment firm, acquired it in 2011 from Buchanan Street Partners
of Newport Beach, Calif., with Bridge Investment of Salt Lake
City staying on as a partner. The transaction valued the property at $15 million, or $36,000/unit. The duo then upgraded the
units, installing new appliances and flooring, and renovated
the clubhouse and other community features.
The apartments have one or two bedrooms, fireplaces, walkin closets and balconies. There are also two heated pools, a
fitness center and a playground. The complex, called One Dartmouth Place, is about 15 miles southeast of downtown Denver.
Denver’s surging economy, driven by the technology, healthcare and energy industries, has fueled big improvements in the
apartment sector. The average occupancy rate is on track to
reach 95% this year, up from the cyclical low of 90.1% in 2010,
according to Marcus & Millichap. And even though 10,000
units are expected to be completed and come on line this year,
double the 2013 total, new household formation is projected
to push up rents again. Rents rose an average of 6.1% last year
and are forecasted to climb another 4.5% this year, one of the
nation’s largest projected increases. Marcus & Millichap ranks
Denver as the third-strongest apartment market in the country,
behind only New York and San Francisco.
CALENDAR
CALENDAR
Main Events
Dates
March 11-14
Mar. 19-20
May 18-21
June 12-13
Oct. 6-8
Oct. 21-24
Oct. 27-29
Nov. 5-7
Event
MIPIM
PREA Spring Conference
RECon
U.S. Real Estate Opportunity & Private Fund Inv. Forum
Expo Real
ULI Fall Meeting
Development ‘14
REIT World
Location
Cannes, France
Boston
Las Vegas
New York
Munich
New York
Denver
Atlanta
Sponsor
Reed MIDEM
PREA
ICSC
IMN
Messe Munchen
ULI
NAIOP
NAREIT
Information
www.mipim.com/
www.prea.org
www.icsc.org
www.imn.org
www.exporeal.net
www.uli.org
www.naiop.org
www.reit.com
Sponsor
AH&LA & BHN
Bisnow
Bisnow
Bisnow
Bisnow
Bisnow
ULI
Bisnow
Bisnow
Bisnow
RELA
Opal Financial
RELA
Marcus & Millichap
TNI
Marcus & Millichap
IMN
Marcus & Millichap
NYU Schack
Real Estate Weekly
Information
www.alisconference.com
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www.bisnow.com
www.bisnow.com
www.bisnow.com
www.uli.org
www.bisnow.com
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www.rela.org
www.opalgroup.net
www.rela.org
mmfloridaforum.com
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mmatlantaforum.com
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mmlosangelesforum.com
www.scps.nyu.edu
rewomensforum.com
Events in US
Dates
Event
Location
Jan. 27-29
Americas Lodging Investment Summit
Los Angeles
Jan. 28
Retail Real Estate Summit
San Diego
Jan. 28
D.C.’s Power Women in Commercial Real Estate
Washington
Jan. 29
DFW 2014 Forecast
Dallas
Jan. 29
State of the Market
San Francisco
Jan. 29
Healthcare Real Estate Summit
New York
Jan. 30
Real Estate Outlook 2014
New York
Jan. 30
Creative Office Summit
Chicago
Jan. 30
Higher Education & Student Housing Summit
Baltimore
Jan. 30
Multifamily Summit
Boston
Feb. 4
New Year’s Networking Event
Chicago
Feb. 8-10
Police, Fire, EMS & Muni. Pension & Benefits Seminar
Las Vegas
Feb. 11
Networking event
New York
Feb. 12
CRE Forum: Florida
Miami
Feb. 12
Art of Negotiating Real Estate Conference
New York
Feb. 13
Southeast Multifamily Forum: Georgia & the Carolinas
Atlanta
Feb. 13-14
Bank Special Asset Conf. on Real Estate Workouts
Fort Lauderdale, Fla.
Feb. 27
Commercial Real Estate Summit
Los Angeles
Feb. 27
Sustainable Real Estate
New York
Feb. 27
Women’s Forum
New York
To view the complete conference calendar, visit The Marketplace section of REAlert.com
This announcement appears as a matter of record only.
December 2013
Rialto Real Estate Fund II, LP
US$1,305,000,000
Rialto Real Estate Fund II, LP, sponsored by
Rialto Capital Management, LLC, is investing primarily in
distressed loans, value-add real estate opportunities and
high-yielding debt securities in the U.S.
Hodes Weill Securities, LLC acted as the exclusive global placement agent.
January 22, 2014
Real Estate
10
ALERT
An investment firm has set a $51.5 million asking price for
an apartment building at Third Avenue and East 101st Street in
Manhattan.
The fully leased Emmerson encompasses 76 apartments, three
street-level retail stores and a unit used as a community center.
At the asking price of $644,000/unit, the capitalization rate
would be just over 4%. The owner, P&G Equities of New York,
has given the listing to Marcus & Millichap’s Institutional Property Advisors unit.
The 12-story building, which P&G completed in 2008, is at
1810 Third Avenue in East Harlem. Most units have one or two
bedrooms, while a few have three. Amenities include a gym, a
roof deck and a 24-hour doorman.
New York remains the nation’s strongest rental market. The
average occupancy rate is 98% across all classes of apartment
properties in the five boroughs. Some Manhattan neighborhoods are flirting with 100% occupancy rates.
to 2013 and is fully leased.
The warehouse, dubbed Commerce Corner at LogistiCenter,
is less than a mile from Interstate 295 and 21 miles southwest
of downtown Philadelphia. It’s close to multiple transportation
hubs — nine miles from the Port of Wilmington in Delaware,
16 miles from Philadelphia International Airport and 22 miles
from the Port of Philadelphia.
The property has two tenants: Performance Food, which has
a lease until 2021, and Mission Produce, until 2029. Each has
annual rent bumps.
The warehouse, completed in 1998 by Dallas-based Trammell
Crow, has modern features, such as minimum ceiling heights
of 32 feet. About one-fifth of the space (57,000 sf) is cooler/
freezer space.
New industrial buildings are in strong demand in Southern
New Jersey. Only 5.9 million sf of industrial space has been
completed since 1995. That new space is 98.4% occupied, well
above the 89% average for the overall 62 million-sf Southern
New Jersey industrial market.
Hotel Near Florida Outlet Mall Listed
Expanded SC Retail Center Available
Long Wharf Real Estate is pitching a recently renovated DoubleTree Hotel near Fort Lauderdale, Fla.
The 250-room hotel is in Sunrise, Fla., next to a popular
outlet mall. The listing is expected to draw offers of close to
$40 million from core-plus and value-added investors. Bostonbased Long Wharf has listed the property with HFF.
The property operated as a Crowne Plaza until 2011, when
it underwent a $4 million renovation and was reflagged as a
DoubleTree. It has since seen an uptick in occupancy and room
rates. It’s being offered unencumbered by management.
The hotel, at 13400 West Sunrise Boulevard, benefits from
its proximity to the 2.1 million-square-foot Sawgrass Mills outlet mall. The center draws some 23 million visitors annually,
making it one of the state’s top tourist destinations.
The DoubleTree has 14,000 sf of meeting space, a restaurant,
a bar, a pool and fitness and business centers. It was developed
in 2001 along with an adjacent 240,000-sf office building, Sawgrass Lake Center, that is separately owned.
An Acadia Realty partnership is marketing a fully leased
shopping center in South Carolina that could attract bids of
about $30 million.
The 252,000-square-foot Hitchcock Plaza, in Aiken, was
recently expanded. At the estimated value, the buyer’s initial
annual yield would be about 7%.
Acadia, a REIT in White Plains, N.Y., owns the property via
a joint venture with Atlanta-based Hendon Properties. The brokerage assignment was given to Jones Lang LaSalle.
The partnership added a 62,000-square-foot store last year
and signed Academy Sports to a lease that runs until 2028. It
has also upgraded the tenant roster in recent years and raised
rents. However, investors are being told there’s still potential to
boost revenues by increasing some below-market leases as they
roll over and by developing an outparcel.
Other tenants include Achieve Fitness (35,000 sf), Ross
Dress for Less (30,000 sf), TJMaxx (28,000 sf), Bed Bath and
Beyond (23,000 sf), Farmers Home Furniture (19,000 sf) and
Old Navy (16,000 sf).
Hitchcock Plaza is on a 26-acre site at 321-459 Fabian
Drive in a busy retail corridor. It’s less than two miles from the
387,000-sf Aiken Mall, which is anchored by Belk, Dillard’s, JC
Penney and Sears. Big-box retailers in the area include Home
Depot, Target and Staples.
Some 29,000 people with an average household income of
$78,000 live within a three-mile radius of the center. Aiken is
about 20 miles east of Augusta, Ga.
Upper Manhattan Apartments on Block
Warehouse, Parcel Near Phila. for Sale
Dermody Properties is marketing a distribution center and
development parcel near Philadelphia.
The 260,000-square-foot warehouse, in Logan Township,
N.J., is fully leased. The offering is expected to attract bids of
about $20 million, or $77/sf. At that price, the buyer’s initial
annual yield would be just above 6%. Dermody, of Reno, Nev.,
has given the listing to CBRE.
The building is on a 14-acre site at 1109 Commerce Boulevard.
It comes with an adjacent 10-acre parcel that can accommodate
a 126,000-sf building. Speculative construction has begun popping up in the area amid strong demand for industrial space.
The distribution center is in a 3.1 million-sf industrial park,
called LogistiCenter at Logan, that was constructed from 1998
Need to see the largest property sales that were completed
recently? Go to The Marketplace section of REAlert.com and click
on “Sales Activity.” It’s free.
STARWOOD PROPERTY TRUST
www.starwoodpropertytrust.com
Starwood Property Trust Closed $5 Billion+ in Deals in 2013
Nationwide Office Portfolio
n
One-stop shop lending seamlessly through
the entire capital stack for our balance
sheet: 1st Mortgages, Mezzanine loans,
B-notes and Preferred Equity.
n
Fast and flexible for the most complex
transactions.
n
Offering competitively priced floating and
fixed rate loans ranging from $30 Million to
$500 Million+.
n
Providing conduit loans on most property
types through Starwood Mortgage Capital.
n
Our underwriting is unconstrained by bank or
bond structure regulations or rating agency
criteria.
n
The nation’s largest commercial mortgage
REIT with 500+ employees (NYSE:STWD).
$250 Million
Preferred Equity Investment
Office Portfolio
Nationwide
San Francisco Multifamily Portfolio
$86 Million
Acquisition Financing
1st Mortgage & Mezzanine Loan
Multifamily
San Francisco, CA
Calistoga Ranch Resort
$29 Million
Acquisition Financing
1st Mortgage
Hospitality
Calistoga, CA
Las Vegas Multifamily/Condo
Conversion Portfolio
$158 Million
Acquisition Financing
First Mortgage & Mezzanine Loan
Multifamily/Condo Conversion
Las Vegas, NV
Aloft Hotel South Beach
$52.5 Million
Construction Financing
1st Mortgage & Mezzanine Loan
Hospitality
South Beach, FL
Contact:
Warren de Haan
310.893.2777
[email protected]
Kyle Jeffers
310.893.2772
[email protected]
Brad Grinna
508.868.5393
[email protected]
Stuart Silberberg
212.237.2877
[email protected]
Kent Daiber
212.237.2878
[email protected]
www.starwoodpropertytrust.com
© 2014 Starwood Property Trust, Inc. Trade/service marks are the property of Starwood Property Trust, Inc. All rights reserved. Restrictions apply. Some products are not available in all states.
This is not a commitment to lend. This is an advertisement.
January 22, 2014
12
Real Estate
ALERT
MARKET SPOTLIGHT
Mid-Atlantic Apartment Properties
A development boom that started two years ago in Greater Washington is rapidly adding to supply. Some
18,000 units are expected to come on line this year, up from 10,000 last year and just 2,000 in 2011.
The increased supply, coupled with slower job growth, is having an effect. Marcus & Millichap predicts
the average occupancy rate in Greater Washington will drop by 80 bp this year, to 94.1%. That would be
the third annual decline in a row.
High rents at luxury properties in Washington and its nearby suburbs may start driving tenants to lowerrent suburban complexes. That, in turn, could attract value-added investors to those properties. Two
current listings by Berkshire Group will test that theory.
On the Market
Property
Berkshire portfolio, Maryland
Berkshire portfolio, Hampton Roads, Va.
Shelter Cove, Odenton, Md.
Forest Hills, Annapolis, Md.
Seller
Berkshire Group
Berkshire Group
Rieder Communities
Morgan Properties
Hit
Market
December
January
January
January
No. of
Apts.
3,000
640
300
153
Estimated Value
($Mil.) (Per Apt.)
$300 $100,000
85
130,000
48
160,000
25
163,000
Broker
CBRE
Apartment Realty Advisors
Transwestern
Transwestern
Closed
November
November
January
December
November
No. of
Apts.
474
282
243
240
127
Sales Price
($Mil.) (Per Apt.)
$222 $468,000
68
241,000
57
234,000
41
172,000
36
283,000
Broker
Cassidy Turley
HFF
(None)
CBRE
None
Recent Deals
Property
Buyer
Sedona & Slate, Arlington, Va.
ASB Capital
Arbors Fair Lakes, Fairfax, Va.
Stockbridge Capital
Archstone Wheaton Station, Wheaton, Md. AvalonBay Communities
Settler’s Landing, California, Md. Dolben Cos.
Morgan Apartments, Rockville, Md.
Meridian Group
Real Estate Alert, the weekly
newsletter that gives you the freshest
intelligence on the confidential plans
of leading dealmakers.
Start your free trial at REAlert.com, or call 201-659-1700.
Commercial Alert Advertising - BW-halfpageADS-01-8411.indd 1
9/9/11 11:11 AM
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January 22, 2014
14
Real Estate
ALERT
RANKINGS
Top Office Brokers in 2013
Brokers representing sellers in deals of at least $25 million
1 Eastdil Secured
2CBRE
3HFF
4 Jones Lang LaSalle
5 Cushman & Wakefield
6 Cassidy Turley
7 Newmark Grubb
8Transwestern
9 Colliers International
10 Massey Knakal
11 Studley
12 Savills
13 Madison Partners
14 HRE Capital
15 McKinney Advisory
16 J.P. Morgan
17 Brookfield Financial
18 Stan Johnson Co.
19 Highland Realty
20 Rosewood Realty
21 Marcus & Millichap
22 Rockwood Real Estate
23 Corcoran Group
24 Lee & Associates
25 Fairchild Partners
26 Coldwell Banker
27 Boston Realty
28 Paragon Commercial Real Estate
29 Lucent Capital
30 Voit Real Estate
Other
Brokered Total
No Broker
TOTAL
2013 Market
Amount
No. of
Share
($Mil) Properties
(%)
$21,644.3
165
33.0
15,636.0
227
23.8
9,480.5
79
14.5
5,819.4
72
8.9
5,153.1
77
7.9
2,398.6
55
3.7
1,182.0
18
1.8
1,149.7
29
1.8
487.3
11
0.7
431.5
6
0.7
395.7
4
0.6
264.6
4
0.4
262.7
7
0.4
181.9
8
0.3
158.0
2
0.2
153.6
13
0.2
150.0
1
0.2
104.0
1
0.2
89.0
1
0.1
68.5
1
0.1
59.6
2
0.1
56.0
1
0.1
46.3
1
0.1
45.0
1
0.1
43.8
1
0.1
40.0
1
0.1
33.2
1
0.1
31.0
1
0.0
25.0
1
0.0
13.2
1
0.0
0.0
0
0.0
65,603.4
764
100.0
6,301.2
98
71,904.6
862
2012 Market
Amount
No. of
Share
($Mil) Properties
(%)
$17,031.4
124
33.9
11,347.0
194
22.6
5,180.5
81
10.3
3,468.0
50
6.9
4,353.2
65
8.7
1,397.2
24
2.8
1,054.5
34
2.1
580.5
10
1.2
281.2
7
0.6
163.0
4
0.3
347.2
5
0.7
240.8
5
0.5
276.2
6
0.5
51.2
1
0.1
0.0
0
0.0
0.0
0
0.0
0.0
0
0.0
56.6
2
0.1
0.0
0
0.0
0.0
0
0.0
169.1
4
0.3
262.5
1
0.5
0.0
0
0.0
0.0
0
0.0
0.0
0
0.0
0.0
0
0.0
0.0
0
0.0
0.0
0
0.0
0.0
0
0.0
27.8
1
0.1
4,015.7
66
8.0
50,303.5
676
100.0
9,513.8
172
59,817.3
848
’12-’13
% Chg.
27.1
37.8
83.0
67.8
18.4
71.7
12.1
98.1
73.3
164.7
14.0
9.9
-4.9
255.3
83.7
-64.8
-78.7
-52.5
30.4
-33.8
20.2
January 22, 2014
15
Real Estate
ALERT
RANKINGS
Office Property Sales by Market in 2013
Sales of at least $25 million
1 New York City
2 Los Angeles Area
3 San Jose/Silicon Valley
4 Boston Area
5 Houston Area
6 Chicago
7 Washington, D.C.
8 Dallas Area
9 Seattle Area
10 Atlanta Area
11 Denver Area
12 San Francisco
13 Austin Area
14 Philadelphia Area
15 Orange County
16 San Diego Area
17 Oakland/East Bay
18 South Florida
19 Minneapolis Area
20 Northern Virginia
OTHERS
TOTAL
2013
Amount
No. of
($Mil.) Properties
$16,291.6
87
5,442.1
51
4,549.7
75
3,984.8
47
3,932.4
28
3,742.4
21
2,719.9
23
2,597.7
41
2,573.9
30
2,323.4
32
1,864.5
22
1,834.1
22
1,452.8
26
1,440.8
23
1,366.9
29
1,143.3
17
1,019.6
9
1,018.4
21
1,018.1
13
993.4
20
10,594.9
225
71,904.6
862
2012
Amount
No. of
($Mil.) Properties
$11,440.2
86
3,117.1
43
3,561.6
100
2,746.7
45
3,172.7
40
2,538.9
19
3,387.6
26
1,524.6
27
4,697.3
27
1,357.1
20
1,432.1
20
4,757.3
30
1,231.8
21
440.3
8
606.1
8
939.0
16
720.1
15
554.5
8
856.2
9
1,503.0
20
9,233.1
260
59,817.3
848
Top Brokerage in 2013
Eastdil Secured
Eastdil Secured
Eastdil Secured
Cushman & Wakefield
HFF
HFF
Eastdil Secured
CBRE
Eastdil Secured
CBRE
Cushman & Wakefield
Eastdil Secured
Eastdil Secured
CBRE
CBRE
Eastdil Secured
Eastdil Secured
CBRE
CBRE
Eastdil Secured
tor Douglas Harmon. “The magical combination of continued low
interest rates, prevalent attractive acquisition debt, improving
before. Its market share ticked up more than a percentage point
market fundamentals and a dearth of quality for-sale product —
to 23.8%. The firm topped the rankings in a number of fastoverlaid with a record-high and growing supply of investors —
growing markets, including Dallas, Atlanta and Philadelphia.
flat-out spells trouble for bargain hunters,” Harmon said.
HFF remained in third place, with $9.5 billion of activity,
Russell Ingrum, managing director of CBRE’s capital-marwhile racking up substantial gains in volume
kets office practice, said many of the top propand market share as it handled more big-ticket
erties have already traded or are in the hands of
deals (see article on Page 16). Rounding out the
long-term owners. “The asset profiles and locaOffice Sales
top five were Jones Lang LaSalle ($5.8 billion)
tions that capital really wants are getting harder
Amount No. of
and Cushman & Wakefield ($5.2 billion).
and harder to find,” Ingrum said.
($Bil.)Prop.
Investors looking for prime properties in
The lack of top-notch offerings caused some
2004
$56.21,020
top cities found less to choose from last year.
significant shifts in the ranks of top markets last
2005
79.31,104
“Frankly, 2013 was a challenging year to find
year. Most dramatically, San Francisco — No. 2
2006
99.11,297
good product at prices that met our return
in 2012 — fell to No. 12 as its volume dropped
2007
138.01,487
requirements,” said Shak Presswala, a manag61%. Also posting declines were Seattle (down
2008 43.4552
ing director of acquisitions and capital markets
45%), Washington (down 20%) and its Virginia
2009 12.6173
at Atlanta-based Jamestown Properties, which
suburbs (down 34%).
2010 33.8441
seeks out high-quality deals in markets such as
New York maintained its top spot with $16.3
2011 48.4646
New York, Washington, Boston and San Franbillion of office sales, up a whopping 42% —
2012 59.8848
cisco. “I expect more of the same in 2014.”
even though only one more property changed
2013 71.9862
The hunt for trophy properties will only intenhands than in 2012. Meanwhile, Los Angeles
sify this year, said Eastdil senior managing direcSee OFFICE on Page 16
Office ... From Page 1
January 22, 2014
Real Estate
16
ALERT
RANKINGS
HFF Lifts Its Share of Big Office Deals
More than other major brokerages, HFF significantly
increased its share of the office-sales market last year.
While taking third place in Real Estate Alert’s office-broker
rankings for the third year in a row, HFF gained significant
ground on perennial leaders Eastdil Secured and CBRE. HFF’s
share of brokered trades grew to 14.5%, from 10.3% in 2012.
By comparison, Eastdil’s market share dipped slightly and
CBRE’s rose by only 1.2 percentage points. Fourth-place Jones
Lang LaSalle made the second-largest gain in market share
among brokerages with $1 billion in sales or more. Its portion
of brokered trades rose to 8.9% from 6.9%.
HFF’s $9.5 billion in office sales represented a whopping
83% increase over 2012, four times the growth rate of the market overall.
The market-share gain was due mainly to landing larger,
more-lucrative assignments from institutional clients. Nationally,
the number of office properties HFF handled decreased slightly,
to 79 from 81, while the average value grew sharply, to $120 million from $64 million. Eastdil, whose business model of pursuing
top-flight assignments is considered a template for HFF’s, had the
largest average property value in 2013, at $131 million.
Over the last few years, HFF has added several high-profile
sales teams to its office platform, notably in New Jersey and
Denver — and those additions appear to be bearing fruit. The
brokerage also saw huge share increases in some of the nation’s
Office ... From Page 15
shook off its doldrums and jumped from seventh place to second, with $5.4 billion of sales last year, a 75% increase. In third
place was San Jose/Silicon Valley ($4.5 billion), followed by
Boston ($3.98 billion) and Houston ($3.93 billion), all of which
continued to show substantial growth.
The scarcity of listings in top cities led investors into secondary markets such as Dallas ($2.6 billion) and Atlanta ($2.3 billion), which pushed their way into the top 10; Philadelphia, where
volume more than tripled to $1.4 billion; and Orange County in
Southern California, where sales doubled to $1.4 billion.
This year, core investors are expected to continue their
march into second-tier cities. That, in turn, will motivate more
owners to sell — including high-yield funds that scooped up
properties in those markets in the lean years.
“The value funds over the next couple of quarters will begin
to start to monetize assets in noncore markets,” said Michael
Bernstein, a principal at Artemis Real Estate of Chevy Chase,
Md. The fund shop targets properties in secondary cities with
strong demographics that can be improved via repositioning
and leasing. Bernstein said Artemis may look to speed up its
exits as demand increases.
Buyers also are expected to move out along the risk spec-
most competitive markets, such as San Jose/Silicon Valley.
There, HFF’s sales grew by more than 500% to $1.2 billion, and
its market share jumped from 6.2% to 29.9%, placing it second,
just behind Eastdil.
In Chicago, HFF moved into first place, up from third in
2012, besting Eastdil and Jones Lang as it racked up $1.7 billion in sales — almost half the city’s total.
Among HFF’s biggest deals last year were several assignments from Fort Worth, Texas, investment shop Crescent Real
Estate that generated $1.8 billion of deals. Those included the
sales of two properties in Houston and Fort Worth, encompassing 5.4 million square feet, for $1.1 billion in September. Later
that month, HFF brokered Crescent’s sale of the 1.4 million-sf
Hughes Center in Las Vegas to a Barclays partnership for $347
million.
HFF also brokered the $414 million sale of the 2.2 million-sf
Prudential Plaza in Chicago for investment shop BentleyForbes
of Los Angeles and its lenders. And in December, HFF
closed the sale of the Denver City Center for Morgan Stanley.
Shorenstein Properties of San Francisco paid $286.5 million for
that 694,000-sf property.
The results are being seen inside HFF as a validation of its
strategy: counting on a select crew of high-level producers
rather than an army of brokers cranking out dozens of deals
apiece. That strategy is closer to the lean-and-mean approach
of Eastdil than that of CBRE, whose blanket coverage of markets large and small propels its production.
trum. That would benefit areas like Southern California, where
buildings that need an injection of capital and leasing work can
be acquired at a deep discount to replacement costs, said Colby
Annett of Stream Realty. He and his brother, Blaine Annett, are
managing partners in the Orange County office of the Dallasbased leasing and management firm, which also invests in office,
industrial and retail properties alongside its institutional clients.
“There is a lot of opportunity here to reposition some of
these buildings,” said Blaine Annett. “The economy out here is
finally starting to gather some steam.”
Buyers unable to find what they want in the top markets and
unwilling to move into secondary markets may be more open
to investing in development, said CBRE’s Ingrum. “Capital that
was looking for core opportunities is probably going to start
looking at build-to-core opportunities,” he said.
The sales figures are based on office, office/flex, office/lab
and office/R&D sales of at least $25 million that closed last
year. Mixed-use properties were included if 50% or more of the
space was used as offices. When multiple brokers shared a listing, the dollar credit was divided evenly, but each broker was
credited with one property. Only brokers for sellers were given
credit. Portfolio transactions were included if the overall price
was at least $200 million or if at least one property in the portfolio had a value of at least $25 million.
January 22, 2014
Real Estate
17
ALERT
RANKINGS
Top Brokers by Market
New York City
1 Eastdil Secured
2CBRE
3 Jones Lang LaSalle
4 Cushman & Wakefield
5 Massey Knakal
6 Newmark Grubb
7Studley
8 Brookfield Financial
9 Colliers International
10 Rosewood Realty
11 Cassidy Turley
12 Corcoran Group
Brokered Total
Los Angeles Area
1 Eastdil Secured
2CBRE
3 Madison Partners
4 McKinney Advisory
5HFF
6 Cushman & Wakefield
7 Highland Realty
8 Jones Lang LaSalle
9 Lucent Capital
Brokered Total
2013 Market
Amount
No. of Share
($Mil.)Properties (%)
$7,496.6
34
48.4
3,992.7
13
25.8
1,685.1
9
10.9
696.3
4
4.5
431.5
6
2.8
405.9
4
2.6
324.0
2
2.1
150.0
1
1.0
141.5
3
0.9
68.5
1
0.4
49.5
1
0.3
46.3
1
0.3
15,487.8
79
100.0
2013 Market
Amount
No. of Share
($Mil.)Properties (%)
$2,915.0
12
60.9
1,447.0
16
30.2
262.7
7
5.5
119.7
1
2.5
118.0
3
2.5
164.8
3
3.4
89.0
1
1.9
48.2
1
1.0
25.0
1
0.5
4,789.4
44
100.0
2013 Market
Amount
No. of Share
San Jose/Silicon Valley ($Mil.)Properties (%)
1 Eastdil Secured
$1,283.0
17
31.1
2HFF
1,230.9
12
29.9
3CBRE
787.1
24
19.1
4 Jones Lang LaSalle
408.6
5
9.9
5 Cassidy Turley
252.7
8
6.1
6 Newmark Grubb
63.5
2
1.5
7 Colliers International
41.9
1
1.0
8 Cushman & Wakefield
31.7
1
0.8
9Savills
23.6
1
0.6
Brokered Total
4,122.9
71
100.0
Houston Area
1HFF
2 Jones Lang LaSalle
3 Eastdil Secured
4CBRE
5Transwestern
Brokered Total
Boston Area
1 Cushman & Wakefield
2 Eastdil Secured
3HFF
4 Jones Lang LaSalle
5CBRE
6 Boston Realty
7 Cassidy Turley
Brokered Total
Chicago
1HFF
2 Eastdil Secured
3 Jones Lang LaSalle
4CBRE
Brokered Total
Washington, D.C.
1 Eastdil Secured
2HFF
3 Cassidy Turley
4Transwestern
5CBRE
6 J.P. Morgan Brokered Total
2013 Market
Amount
No. of Share
($Mil.)Properties (%)
$1,659.9
9
49.7
542.0
3
16.2
531.3
2
15.9
443.9
8
13.3
161.3
3
4.8
3,338.3
25
100.0
2013 Market
Amount
No. of Share
($Mil.)Properties (%)
$1,398.1
21
37.1
1,244.5
8
33.1
647.8
7
17.2
296.2
5
7.9
119.6
2
3.2
33.2
1
0.9
25.0
1
0.7
3,764.3
45
100.0
2013 Market
Amount
No. of Share
($Mil.)Properties (%)
$1,736.1
6
48.8
1,093.4
6
30.7
425.1
3
11.9
304.8
4
8.6
3,559.4
19
100.0
2013 Market
Amount
No. of Share
($Mil.)Properties (%)
$1,056.9
9
40.7
913.8
4
35.2
529.4
5
20.4
42.0
1
1.6
36.5
1
1.4
15.8
1
0.6
2,594.4
21
100.0
January 22, 2014
Real Estate
18
ALERT
RANKINGS
Top Brokers by Market (continued)
Dallas Area
1CBRE
2HFF
3 Eastdil Secured
4 Jones Lang LaSalle
5 Cushman & Wakefield
6 Colliers International
7 Cassidy Turley
8Transwestern
Brokered Total
Seattle Area
1 Eastdil Secured
2 Jones Lang LaSalle
3CBRE
4HFF
Brokered Total
Atlanta Area
1CBRE
2 Eastdil Secured
3 Jones Lang LaSalle
4 Cushman & Wakefield
5 Rockwood Real Estate
6 Lee & Associates
Brokered Total
Denver Area
1 Cushman & Wakefield
2HFF
3CBRE
4 Jones Lang LaSalle
5 Eastdil Secured
Brokered Total
2013 Market
Amount
No. of Share
($Mil.)Properties (%)
$940.6
18
40.7
633.9
7
27.4
258.6
6
11.2
176.7
3
7.6
99.1
2
4.3
85.1
1
3.7
68.8
1
3.0
50.9
1
2.2
2,313.6
39
100.0
2013 Market
Amount
No. of Share
($Mil.)Properties (%)
$1,688.1
15
67.3
447.5
7
17.8
345.6
6
13.8
28.2
1
1.1
2,509.4
29
100.0
2013 Market
Amount
No. of Share
($Mil.)Properties (%)
$953.7
16
48.1
474.2
4
23.9
249.0
2
12.6
203.3
4
10.3
56.0
1
2.8
45.0
1
2.3
1,981.2
28
100.0
2013 Market
Amount
No. of Share
($Mil.)Properties (%)
$704.1
6
39.2
504.5
4
28.1
403.0
8
22.4
155.6
2
8.7
29.0
1
1.6
1,796.2
21
100.0
2013 Market
Amount
No. of Share
San Francisco
($Mil.)Properties (%)
1 Eastdil Secured
$934.3
9
50.9
2 Jones Lang LaSalle
234.0
3
12.8
3 Cushman & Wakefield
218.8
4
11.9
4HFF
171.0
2
9.3
5Savills
160.0
2
8.7
6 Newmark Grubb
116.0
3
6.3
Brokered Total
1,834.0
22
100.0
2013 Market
Amount
No. of Share
Austin Area
($Mil.)Properties (%)
1 Eastdil Secured
$554.9
11
42.6
2CBRE
450.1
8
34.6
3HFF
296.4
6
22.8
Brokered Total
1,301.3
25
100.0
Philadelphia Area
1CBRE
2 Jones Lang LaSalle
3 Newmark Grubb
4 Cushman & Wakefield
Brokered Total
Orange County
1CBRE
2 Eastdil Secured
3 Newmark Grubb
4 Cushman & Wakefield
5 Jones Lang LaSalle
6HFF
7 Colliers International
8 Voit Real Estate
Brokered Total
San Diego Area
1 Eastdil Secured
2CBRE
3 Cassidy Turley
4 Jones Lang LaSalle
Brokered Total
2013 Market
Amount
No. of Share
($Mil.)Properties (%)
$408.9
7
50.1
285.9
3
35.0
93.6
1
11.5
28.4
1
3.5
816.9
12
100.0
2013 Market
Amount
No. of Share
($Mil.)Properties (%)
$358.7
8
27.5
357.2
8
27.4
203.8
5
15.6
125.4
2
9.6
111.8
2
8.6
106.8
3
8.2
26.0
1
2.0
13.2
1
1.0
1,302.9
30
100.0
2013 Market
Amount
No. of Share
($Mil.)Properties (%)
$346.5
3
33.5
293.6
4
28.4
283.1
6
27.4
110.6
4
10.7
1,033.7
16
100.0
January 22, 2014
Real Estate
19
ALERT
RANKINGS
Top 50 Office-Property Sales in 2013
Price
Property
SF-000Buyer
Seller
Broker
($Mil.)
1 30 Rockefeller Plaza, New York
1,300 NBCUniversal
General Electric
CBRE
$1,300.0
2 650 Madison Avenue, New York
600 Vornado Realty, partners
Carlyle Group
Eastdil Secured
1,294.0
3 Sony Building, New York
853 Chetrit, Clipper Equity
Sony Corp.
Eastdil Secured
1,100.0
4 1211 Ave. Amer., New York (51% stake) 2,014 Ivanhoe Cambridge, Callahan Beacon Capital
Eastdil Secured
892.5
5 City National Plaza, Los Angeles
2,496 Calpers
CalSTRS, Thomas Properties Eastdil Secured
858.0
6 237 Park Avenue, New York
1,250 RXR, Walton Street Capital
Lehman Brothers
Jones Lang LaSalle
825.0
7 One Chase Manhattan Plaza, New York 2,200 Fosun International
J.P. Morgan
CBRE
725.0
8 425 Lexington Avenue, New York
749 J.P. Morgan Asset Mgmt.
Hines Eastdil Secured, CBRE 664.4
9 1440 Broadway, New York
756 American Realty Capital
Rockpoint, Monday Properties Eastdil Secured
530.0
10 BG Group Place, Houston
973 Invesco Real Estate
Hines, Calpers
Eastdil Secured
480.0
11 195 Broadway, New York (95% stake)
1,052 J.P. Morgan
Beacon Capital, L&L Holdings Eastdil Secured
475.0
12 125 West 55th Street, New York
588 J.P. Morgan Asset Mgmt.
Boston Properties, partners
CBRE
470.0
13 Citigroup Center, Chicago
1,456 KBS
GE Asset Mgmt., US Treuhand HFF
425.0
14 Prudential Plaza, Chicago
976 Mark Karasick, partners
BentleyForbes
HFF
414.0
15 Williams Tower, Houston
1,545 Invesco Real Estate
Hines
Jones Lang LaSalle
412.0
16 NBCUniversal Building, Los Angeles
814 Comcast
Normandy Real Estate
CBRE
400.0
17 Wells Fargo Center, Seattle
984 Ivanhoe Cambridge, Callahan Beacon Capital
Eastdil Secured
390.0
18 499 Park Avenue, New York
302 American Realty Advisors
Hines
Eastdil Secured, CBRE 386.0
19 Washington Harbour, Washington
558 Principal Real Estate
MRP Realty, Rockpoint
HFF
373.0
20 US Bank Tower, Los Angeles
1,433 Overseas Union Enterprise
MPG Office
Eastdil Secured
367.5
21 Riverside Plaza, Chicago
685 Ivanhoe Cambridge
Tier REIT
HFF
361.0
22 One Financial Center, Boston (50% stake) 1,300 Norges Bank, MetLife
Beacon Capital
Eastdil Secured
350.0
23 Hughes Center, Las Vegas
1,446 Equity Office Properties
Crescent Real Estate
HFF
347.5
24 Chicago Title and Trust Center, Chicago 1,069 Korea Post
Tishman Speyer
Eastdil Secured
331.3
25 Lantana Campus, Santa Monica, Calif.
485 Jamestown Properties
Lionstone Group
Eastdil Secured
314.0
26 One Metro Center, Washington
421 Jamestown Properties
Clarion Partners
Cassidy Turley
307.5
27 Center Plaza, Boston
717 Shorenstein Properties
Blackstone
Cushman & Wakefield 307.0
28 1888 Century Park East, Los Angeles
505 CommonWealth, Calpers
Blackstone
Eastdil Secured
305.0
29 181 West Madison Street, Chicago
953 CBRE Global Investors
GE Asset Management
Eastdil Secured
302.0
30 1200 19th Street NW, Washington
334 Fosterlane Management
Hines
HFF
296.0
31 Denver City Center, Denver
694 Shorenstein Properties
Morgan Stanley
HFF
286.6
32 2600 Camino Ramon, San Ramon, Calif. 1,800 (Undisclosed)
AT&T
CBRE
275.0
33 140 West Street, New York
475 Magnum Real Estate
Verizon
Cushman & Wakefield 274.0
34 One Post Office Sq., Boston (50% stake)
807 Morgan Stanley
Blackstone
Eastdil Secured
273.5
35 333 Bush Street, San Francisco
543 DivcoWest, partners Brookfield Asset Mgmt.
Eastdil Secured
264.5
36 Sunnyvale Office Park, Sunnyvale, Calif.
425 CommonWealth Partners
Tishman Speyer
HFF
263.0
37 350 Madison Avenue, New York
394 RFR Realty
Kensico Properties
Jones Lang LaSalle
261.5
38 IDS Center, Minneapolis
1,433 Harel Insurance, partners
Inland Real Estate
HFF
253.5
39 Marathon Oil Tower, Houston
1,200 CBRE Global Investors
Hanover Real Estate
(None)
249.5
40 1&2 Commerce, Philadelphia (75% stake) 1,900 Brandywine Realty
Parkway Properties
(None)
248.9
41 One Wells Fargo Center, Charlotte
985 Starwood Capital, Vision
Childress Klein Properties
CBRE
245.0
42 315 Park Avenue South, New York
325 Spear Street Capital
BCN Development
Eastdil Secured
240.0
43 Corporate Technology 1&2, San Jose
610 KBS Realty
Blackstone
CBRE
239.0
44 Wellesley Office Park, Wellesley, Mass.
649 Manulife
Blackstone
HFF
237.0
45 Post Oak Central, Houston
1,300 Cousins Properties
J.P. Morgan, GE Pension
(None)
232.6
46 100-104 Fifth Avenue, New York
277 Clarion Partners
Kaufman, Invesco
Studley
230.0
47 101 Murray Street, New York
146 Fisher Brothers, partners
St. John’s University
Cushman & Wakefield 223.0
48 333 West 34th Street, New York
347 American Realty Capital
SL Green
Jones Lang LaSalle
220.3
49 225 West Wacker Drive, Chicago
651 Mirae Asset Management
J.P. Morgan Asset Mgmt.
Jones Lang LaSalle
218.0
49 Campus at Playa Vista, Playa Vista, Calif. 325 Hines
Tishman, Walton Street
CBRE
218.0
January 22, 2014
20
Real Estate
ALERT
THE GRAPEVINE
... From Page 1
Mast and Richard Furr started last week,
both as senior vice presidents. Furr is a
20-year real estate veteran, most recently
working as the head of Apartment Realty
Advisor’s private-client group in Dallas.
He was a former head of acquisitions for
Milestone Group of Dallas. Mast joined
Jones Lang from Dallas development
and investment shop PegasusAblon
Properties, where he was a managing
director. Both men report to managing
director Jeff Pierce, who joined Jones
Lang in 2012 when the Chicago
brokerage acquired his Dallas shop, The
Apartment Group.
Brook Katzen started at SB-Urban of
Bethesda, Md., this month as a vice
president of development. He’ll work
on multi-family properties in urban
areas. Katzen previously had stints as
a development associate at JBG Cos. of
Chevy Chase, Md., and as a director of
acquisitions and development at Bright
Start, an investment arm backed by the
deputy ruler of Dubai. SB-Urban is led
by president Mike Balaban and cofounder Frank Saul.
The offering of a luxury apartment
project in Los Angeles that’s nearing
completion could result in a sale for just
over $300 million, or $650,000/unit.
That would rank among the biggest
apartment deals in the city’s history.
The Vermont, at 3150 Wilshire Boulevard on the corner of South Vermont
Avenue, will have 464 luxury units in
two steel-and-glass towers. Jones Lang
LaSalle is marketing the complex for
a partnership led by local developer
J.H. Snyder Co. Pre-leasing is under
way, and construction is expected to be
completed in the spring. The property
features a raft of amenities, including a
rooftop deck and pool.
FBE Ltd., a family-owned New York
investment shop, hired Eli Gibber last
month as a vice president to work on
property acquisitions. The firm buys
across asset classes, mostly in the New
York metropolitan area. Gibber previously worked on loans for Eastern Union
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