DECEMBER 20, 2013

Recent commercial real estate acquisitions

by Andrea Waitrovich

Below is a sampling of recent property transactions tracked by Real Capital Analytics. The largest completed transactions included two office properties in Chicago and Massachusetts.

In Chicago, KBS REIT III purchased 500 West Madison, also known as Citigroup Center, an iconic, 1.5 million-square-foot mixed-use tower in Chicago, for $425 million. The sellers were joint venture partners General Electric Pension Trust and Estein & Associates. The 40-story building is located in the city's West Loop submarket. The purchase is KBS REIT III's largest and brings its total acquisition volume to $1.26 billion. The 500 West Madison acquisition is the latest in a series of high-quality KBS REIT III purchases in 2013 and the largest since the REIT commenced operation in 2011. The transaction follows KBS REIT III's $121 million purchase earlier this month of 201 Spear St., a 246,563-square-foot, waterfront class A office tower in San Francisco's South Financial District. 

In Wellesley Hills, Mass., Wellesley Office Park sold for $237 million to Manulife Financial Corp. The 650,000-square-foot, eight-building campus was sold by The Blackstone Group. The property was part of its Equity Office portfolio, which the firm acquired when it bought Equity Office Properties Trust for $23 billion in 2007. The portfolio included more than 580 buildings totaling more than 105 million square feet nationwide.


Blackstone has already sold several Equity Office properties in the region. New England Executive Park in Burlington, Mass., was sold to Charles River Investors for $216 million; 25 Mall Road in Burlington was purchased by TA Associates for $77.1 million; Hines bought Riverside Center at 275 Grove St. in Newton, Mass., for $197 million; and 1–3 Center Plaza in Boston is under agreement with Shorenstein Properties.


Other Massachusetts assets listed by Blackstone include the property formerly known as the State Street building in Boston’s Financial District; 60 State St. and 100 Summer St. in Boston’s Financial District; 500 Boylston St. in Boston’s Back Bay; and 125 and 150 Cambridgepark Drive in West Cambridge, Mass.


Buyer Seller  Type Size Location  Price (M) Price/Units
Fan Du Guardian Life Insurance Co. Apartment 295 units Malden, MA $60.00 $203,389.83
BC Property Investments  Harbor Group International Apartment 624 units Nashville, TN $57.00 $91,346.15
Florida Sunshine Investments/Forest Properties TIAA-CREF Apartment 117 units Astoria, NY $47.20 $403,418.80
Acacia Capital Corp. Security Properties Apartment 194 units Bellevue, WA $41.85 $215,721.65
TriBridge Residential Winter Properties Apartment 166 units Charlotte, NC $21.00 $126,506.02
Monarch Harry Freeman Apartment 370 units Fenton, MO $19.00 $51,351.35
Gaia Real Estate Holdings  Pfizer Corp. Apartment 21 units New York, NY $14.60 $695,238.10
Prudential Real Estate Investors Laramar Group Hotel 297 rooms Chicago, IL $86.80 $292,255.89
Shoham Amin  Thayer Lodging Group Hotel 115 rooms Sarasota, FL $10.80 $93,913.04
Shoham Amin  Thayer Lodging Group Hotel 121 rooms Sarasota, FL $9.00 $74,380.17
Inland Real Estate Group  Winstanley Enterprises Industrial 416,599 sf Bristol, CT $42.00 $100.82
Kohl's JF US Industrial Trust Industrial 300,120 sf Menomonee Falls, WI $15.20 $50.65
Paradigm Capital Advisors Praedium Group Industrial 160,000 sf Boston, MA $12.30 $76.88
KBS REIT III GE Pension Trust/Estein & Associates Office 1,460,000 sf Chicago, IL $425.00 $291.10
Manulife Financial Corp.  The Blackstone Group Office 641,700  sf Wellesley Hills, MA $237.00 $369.33
Rockrose Developmentd Savanna Office 143,869  sf New York, NY $105.00 $729.83
Epic UK Ltd. Clarion Partners Office 105,000  sf Washington, DC $52.78 $502.70
CA Ventures Franklin Street Properties Office 257,508  sf Minneapolis, MN $33.00 $128.15
Gladstone Commercial Opus Office 97,797  sf Englewood, CO $18.25 $186.61
RREEF Property Trust Meriwether Partners Office 31,774  sf Seattle, WA $12.75 $401.27
Melvin Mark Cos./Becker Capital Management Jeld-Wen Office 65,000  sf Portland, OR $12.30 $189.23
Dunhill Partners Long Wharf Real Estate Partners Retail 295,949  sf Riverside, CA $61.27 $207.03
Retail Opportunity Investments Corp. Vons Cos. Retail 100,408  sf La Canada Flintridge, CA $35.90 $357.54
National Retail Properties Brian Pellowski Retail 50,000 sf Minneapolis, MN $13.83 $276.60
Schnitzer West Aspen Growth Properties Retail 15,864 sf Bellevue, WA $12.00 $756.43


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