CAPRE’s Commercial Real Estate Headlines for September 3, 2019
Check out the latest deals and developments in commercial real estate for September 3, 2019:
- BSR Real Estate Investment Trust Announces US$104.4 Million of Acquisitions and US$35 Million Bought Deal Equity Financing and US$15 Million Private Placement: BSR Real Estate Investment Trust has completed the purchase of two adjacent Class A garden style apartment communities, Cielo and Madrone, located in Austin, Texas, totaling 554 apartment units, for an aggregate purchase price of US$104.4 million. BSR’s portfolio is now comprised of 47 multifamily garden-style residential properties consisting of 10,268 apartment units. Concurrently with the announcement of the Acquisition, the REIT also announced that it has entered into an agreement to sell to a syndicate of underwriters led by BMO Capital Markets on a bought deal basis 3,302,000 trust units of the REIT at a price of US$10.60 per Unit for gross proceeds to the REIT of approximately US$35 million. In addition, the REIT has also granted the underwriters an option, exercisable at any time, in whole or in part, for a period of 30 days following the closing of the Public Offering to purchase up to an additional 495,300 Units at the Offering Price, which, if exercised in full, would increase the gross proceeds of the Public Offering to approximately US$40 million.
- Zilber Buys Vacant Building in Pleasant Prairie Industrial Park: Milkwaukee Business News is reporting that the Zilber Property Group has acquired a roughly 121,000-square-foot industrial building located on Pleasant Prairie’s LakeView Corporate Park in Milwaukee, WI. “The building, located at 8778 100th St., was acquired for $6.84 million, according to state records. The corporate park is near Interstate 94, with easy access to the Chicago and Milwaukee markets, Zilber noted in a news release. According to county records, the 7.1-acre site where the building is located is assessed at $8.3 million,” reads the article. “The I-94 Corridor and Kenosha County continue to be advantageous locales for industrial real estate investment,” said John Kersey, executive vice president of Zilber Ltd. “This acquisition represents our ongoing commitment to invest in the area, as we strongly believe it will continue to be an attractive location for industrial users.”
- Burlington Capital and Subsidiary Announce Agreement to Sell Its AFCA 2 Partnership Interests to Greystone: Burlington Capital and Greystone & Co. have jointly announced that Burlington Capital and one of its subsidiaries have agreed to sell all of their interests in America First Capital Associates Limited Partnership Two to Greystone for $80 million in cash. AFCA 2 is the general partner of America First Multifamily Investors, L.P., a publicly traded limited partnership. The transaction is expected to close in the third quarter of 2019, subject to the satisfaction of customary closing conditions.
- Piedmont Office Realty Trust Acquires Remainder of the Atlanta Galleria Office Towers: Piedmont Office Realty Trust, Inc. (NYSE: PDM) announced today that it has completed the purchase of Galleria 400 and Galleria 600, two office towers totaling approximately 860,000 square feet and an adjacent 10.2 acre land parcel entitled for one million square feet of additional development for a total of $231.2 million. The acquisition is located within The Galleria, a master-planned, mixed-use development in northwest Atlanta with prominent visibility from I-75 and I-285. Since 2015, Piedmont has assembled 2.1 million square feet of office space across five buildings along with three development sites, consolidating the project’s multi-tenant office buildings and 6,000-space structured parking facilities under a single owner for the first time. Piedmont’s total investment in The Galleria is just under $500 million, which represents a significant discount to estimated replacement cost. The Galleria offers unique direct access to The Battery – the mixed-use center which includes SunTrust Park, home of the Atlanta Braves, and the 4,000-seat Coca-Cola Roxy Theater, as well as over 500,000 square feet of dining and entertainment options. The Galleria includes office, multifamily and retail, along with a four-star hotel, the Cobb-Galleria Convention Center and the Cobb Energy Performing Arts Centre.
- Virginia Retirement Systems ET AL Invests $296,000 in Mack Cali Realty Corp: The Virginia Retirement Systems ET AL bought a new stake in shares of Mack Cali Realty Corp (NYSE:CLI) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 12,700 shares of the real estate investment trust’s stock, valued at approximately $296,000. Other large investors have also made changes to their positions in the company. Frontier Capital Management Co. LLC boosted its stake in shares of Mack Cali Realty by 0.7% in the first quarter. Frontier Capital Management Co. LLC now owns 2,676,565 shares of the real estate investment trust’s stock worth $59,420,000 after buying an additional 18,650 shares during the last quarter. Geode Capital Management LLC raised its holdings in Mack Cali Realty by 6.9% in the 4th quarter. Geode Capital Management LLC now owns 1,233,597 shares of the real estate investment trust’s stock worth $24,166,000 after purchasing an additional 79,521 shares during the period.