Philip Blumberg Blog

Blumberg Capital Partners Video

Positive Signs in the Market: Philip Blumberg of Blumberg Capital Partners discusses the current positive signs in the market and his expectations in the coming years.

Hines Makes $66.5M Purchase in Denver

Hines Real Estate Investment Trust, Inc. (Hines REIT) has acquired two Class A Colorado office/flex complexes, 345 Inverness Drive South and Arapahoe Business Park, from SVN Equities, LLC. Sperry Van Ness sold the properties for $66.5 million, or approximately $137 per square foot, according to a CoStar Group article.

The projects contain a total of 10 buildings representing 484,737 square feet, and lies approximately 9 miles south of downtown Denver in Arapahoe County. Hines REIT has engaged Frederick Ross Company, a local real estate company, to manage these properties. The business park was developed from 1998-2001, and is 100 percent leased to tenants including American Honda Motor Co., ViaWest Internet Service, Vistar Corporation and Pulte Mortgage, LLC. "These assets were extremely attractive to the Hines REIT due to their desirable locations and stable, quality tenant rosters," said Charles Hazen, president and CEO of Hines REIT.

For more news and information, visit Blumberg Capital Partners.

US Industrial REIT II Acquires Cinram Distribution Center

US Industrial REIT II, which is owned by an affiliate of USAA Real Estate Co. and other institutional investors, has added the Cinram Distribution Center to its portfolio of large scale bulk distribution properties in the US. The REIT purchased the Chicago-area property for an undisclosed price from Cinram Distribution L.L.C., a Canada-based manufacturer of DVDs, CDs and computer software, according to a CPN article.

The 595,000-square-foot facility, located within the Meridian Business Campus in Aurora, Illinois, is a state-of the-art distribution center built in 1997. In addition to the property, the REIT also purchased an additional 11.7 acres of adjacent land. "We are very pleased to be adding this quality asset to the US Industrial REIT II portfolio," cited Pat Duncan, Chairman and CEO of USAA Real Estate Company. "This acquisition marks the REIT's entry into the Chicago marketplace which is considered the industrial capital of the Midwest."

For more news and information, visit Blumberg Capital Partners.

Jefferson Building in DC Sells

The Jefferson Building, a 72,756-square-foot, eight-story office building in Washington, DC, was sold by BlackRock Realty for an undisclosed price to INVESCO Real Estate, according to a crefeed.com article. The property, which transfered hands free and clear of debt, was marketed for the seller by the the DC office of Holliday Fenoglio Fowler.

"This boutique asset has enjoyed an excellent occupancy history due to its prominent corner location with windows on all four sides as well as 9,350-square-foot floor plates, which have attracted small law firms and associations. In addition, The Palm, the building's landmark restaurant, recently expanded and renewed its lease," said Dek Potts. senior managing director at HFF. Located at 1225 19th Street NW, the Jefferson Building is situated within the Golden Triangle Business Improvement District of Washington, D.C. with easy access to Connecticut and Massachusetts Avenues, K Street and Rock Creek Parkway as well as Dupont Circle Metro Station and Farragut North Metrorail Station. The 93% leased property was most recently renovated in 2007 and has parking for 64 cars in a two-level underground parking garage.

For more news and information, visit Blumberg Capital Partners.

Foreign Investors Looking at CRE in Atlanta

Atlanta is showing signs of a renewal in commercial property interest as small foreign investors are beginning to return to the market for the first time in 15 years, according to an Atlanta Business Chronicle article. These small private firms are seeking to take advantage of the falling property values in the market and are able to acquire distressed properties, benefiting from the weakened dollar for European investors.

"You have this Bermuda Triangle that many developers find themselves in, with rents and property values that are plummeting and credit lines that are locked down and a flow of capital that has all but come to a halt, said Phillip Thompson, a partner with the Atlanta office of Duane Morris LLP. Foreign investors, both firms and individuals, are hoping to benefit from participating in real estate amid a shortage of US capital.

Equity investors plan to increase investment by 40 percent globally and by 73 percent in the United States in the next year, according to an annual survey conducted by the Association of Foreign Investors in Real Estate. The survey reflected that foreign real estate lenders plan to increase lending by 54 percent globally and by 58 percent in the United States. The survey was carried out in the fourth quarter of 2008 among the association’s nearly 200 members.

For more news and information, visit Blumberg Capital Partners.

Blumberg Capital Partners Video

Competitor Mistakes: Philip Blumberg of Blumberg Capital Partners discusses taking care of your assets and why being a responsible operator is so important. For more news and information, visit Blumberg Capital Partners.

Chicago's Congress Center Deal Falls Through

Franklin Street Properties Corp., a Boston-based real estate investment trust, has terminated an agreement to pay $130 million for a prime downtown property in Chicago according to a CPN article. The deal, due to close by March 31, would have had Franklin pay a portion of the $130 million purchase price through the assumption of mortgage debt in the original principal amount of approximately $97.5 million. The mortgage debt was to be secured by three promissory notes in the original amounts of $18 million, $15 million and $2.5 million. The mortgage debt has a maturity date of Oct. 1, 2014.

No termination fees will be incurred, and no reason for the termination of the material definitive agreement was listed on the SEC report. The Congress Center building, located at 525 West Van Buren St. in Chicago’s West Loop, is owned by Grubb & Ellis Realty Investors, according to published reports last year. The property is a 16-story, trophy tower built in 2002 with approximately 522,000 square feet of rentable space.

For more news and information, visit Blumberg Capital Partners.

Blumberg Capital Partners in the News

Last week’s GlobeSt.com Quick Poll asked readers whether or not our new president’s economic recovery plan would help the commercial real estate industry. It was a close call, but 55% of our nearly 770 respondents voted “no,” with the remainder thinking Barack Obama’s will work. Philip Blumberg, founder of Coral Gables, FL-based Blumberg Capital Partners was in the minority. He spoke with GlobeSt.com recently about why he has hope in Obama’s plan.

An excerpt:

I am a fiscal Republican, but a registered Democrat, and he has made a very strong impression on fiscally conservative people. He’s taken a very common-sense approach. But his plan is in formation. To the degree that he seems fiscally aware of the potential impacts of a highly inflationary economy because of government spending, it’s refreshing to hear from a Democrat, particularly the most important Democrat.

It bodes better for this economy. Not that it bodes well, but better than the worst perspective, which has been flagrantly spending money or making commitments that are ultimately going to be disasterously inflationary. The concept that real estate is a good inflation hedge has some merit to it, but certainly not enough merit to warrant the type of inflation we are going to be looking at.

To read the full article, click here.

Research in Motion buys Riverside Commons in Texas

BlackBerry maker Research in Motion has acquired Riverside Commons, an office campus featuring 460,297 square feet of space and six office buildings in Las Colinas, Texas, a submarket of Irving.

The seller, Dallas-based Westmount Realty, has owned the complex since 2006 and completed a $5.7 million renovation program on campus. Occupancy was 86 percent at the time of closing. The largest tenant presently at Riverside Commons is Sprint Nextel Corp., which occupies 211,315 square feet. Research in Motion had previously occupied 134,177 square feet at the property, which it was using as its company headquarters according to a GlobeSt article.

For more real estate news and information, visit Blumberg Capital Partners.

Hampshire Companies Finalize New Jersey Office Deal

The Hampshire Companies, in a joint venture with Onyx Equities, have completed the acquisition of a 48,000-square-foot office building located at 85 Harristown Road in Glen Rock N.J. according to a crefeed.com report. The property was purchased from Motorola, Inc. for an undisclosed amount.

The property will undergo major renovations and upgrades throughout 2009, which will include new facades, windows, lobbies, landscaping, HVAC system, roof, and restrooms making it ideal for medical office users. "Based on our ability to meet and exceed tenant demand and Onyx Equities' successful track record in the medical / office marketplace, this acquisition is a strong addition to our portfolio," said Todd Anderson, Principal of The Hampshire Companies.

For more news and information, visit Blumberg Capital Partners.