CAPRE’s Commercial Real Estate Headlines for November 26, 2019

Check out the latest deals and developments in commercial real estate for November 26, 2019:

  • Taurus Sells Logistics Portfolio for $614,000,000, Exits US Logistics Fund I: Taurus Investment Holdings has announced the sale of an 8.2 million square foot logistics portfolio located in the Chicago, Dallas, Atlanta and Memphis markets to Investcorp, a leading global provider and manager of alternative investment products. The portfolio consists of 117 buildings with more than 400 regional, national and international tenants. The firm exited its US Logistics Fund I and three co-investment vehicles totaling $204 million in equity capital. Taurus will remain the co-invested manager of the portfolio in joint venture with Investcorp.
  • Tri Properties and NAI Carolantic Realty Announce Merger: Tri Properties and NAI Carolantic Realty, two of the Triangle’s leading commercial real estate firms, today announced a merger, creating one of the largest full-service brokerage companies in the region. Together, the firms have more than 75 years of local expertise and a combined leasing and sales portfolio in excess of 12.7 million square feet to include office, industrial, retail, flex, and investment properties as well as 7,000+ acres of land for sale.Tri Properties has developed over 5 million square feet of commercial space in the Triangle with notable projects such as Imperial Center, IQVIA Tower, Town Hall Commons, Northchase at Midtown and Palladian Corporate Center. In addition, the firm is among the largest property management companies in the region with a management portfolio in excess of 7.5 million square feet.
  • Douglas Emmett Acquires Additional Ownership Interest In Existing Fund: Douglas Emmett has acquired approximately 17% of the equity in one of its existing unconsolidated real estate funds in exchange for approximately $95 million in cash and Operating Partnership Units.  The acquisition brought Douglas Emmett’s total ownership of that fund to approximately 89%.  Douglas Emmett and one remaining institutional investor in the fund agreed to extend the fund term to 2049. The fund owns six Class A office properties totaling approximately 1.5 million square feet in the prime Los Angeles submarkets of Beverly Hills, Santa Monica, Sherman Oaks/Encino and Warner Center. The fund also owns an interest in another Douglas Emmett unconsolidated real estate fund which owns two additional Class A office properties totaling 386,000 square feet in Beverly Hills and Brentwood. Douglas Emmett expects that the fund will be treated as a consolidated entity under generally accepted accounting principles following the acquisition, and that the transition to a consolidated entity will be treated as a purchase of the underlying assets and liabilities of the fund.
  • Boston Property Ventures Taps Advisors Living for Southie’s The Mezz Development: Boston Realty Advisors has announced that Boston Property Ventures has engaged Advisors Living, for The Mezz – BPV’s newest development – located in South Boston. BPV is a real estate development and investment management firm. Their primary focus is on building residential complexes between 25 and 100 units, with experience throughout Quincy, South End, Back Bay, Fort Point and now South Boston. BPV purchased the property, located at 420 West Broadway, for $8.2 million in July 2018. Soon after the property was acquired, the BPDA approved BPV’s plan to redevelop the property into a community of forty-two modern condominiums, with a suite of amenities including an expansive rooftop garden, zen patio, clubroom, underground parking and bicycle storage. Originally built in 1920 – designed by architects Clarence H. Blackall, Clapp and Whittemore – The Mezz sits on the site of the historic Broadway Theater in South Boston. Following a fire, the theater was rebuilt to the designs of architect Clarence Kivett in 1938. The Broadway Theater was a South Boston staple for decades, until it ultimately shut down in the 1980s.
  • MGM Growth Properties LLC Announces Closing Of Upsized Public Offering Of Class A Shares: MGM Growth Properties has closed its previously announced underwritten follow-on public offering of 30 Million Class A shares at a public offering price of $31.25 per share. The Company received net proceeds of approximately $540.8 Million USD from the sale of the 18,000,000 shares sold directly to the underwriters. The 18,000,000 shares was increased from the originally announced offering size of 12,000,000 shares. In addition, the Company has granted the underwriters a 30-day option to purchase up to an additional 4,500,000 shares, on the same terms and conditions. The Company had also previously entered into forward sale agreements with each of J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and BofA Securities with respect to 12,000,000 shares.