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THE GRAPEVINE

Industry veteran Scott Silverberg has left Nippon Life Global Investors. He was a senior vice president working on real estate and infrastructure out of the Japanese insurer’s New York office, where he worked for 10 years. Among other duties, he was portfolio manager of Nip-pon’s Global Property Portfolio Fund. Sil-verberg told colleagues he’s returning to his hometown of Toronto. He had prior stints at Tishman Speyer and Brookfield Asset Management.

Pennsylvania State Employees has hired Phil Greenberg as a managing director focused on commercial real estate. He started Feb. 21, reporting to chief invest-ment officer Bryan Lewis. Greenberg came from Cornell University, where he was a visiting lecturer and associate

2 Host Nabs Luxury Hollywood Hotel

2 Abacus Back on Fund-Raising Trail

2 Japanese Tenant Buys Calif. Offices

2 Miller to Acquire San Diego Complex

4 Value-Added Rental Play in Calif.

4 Balboa Buying Oregon Retail Center

4 Whole Foods Store Listed Outside SF

6 Warehouses Offered in Chicago Area

6 New Apartments for Sale Near Boston

6 Survey: Investors Ready to Buy in 2017

7 Novel Retail Center Listed in Calif.

9 Calif. Tech Firm Plans Sale-Leaseback

9 ON THE MARKET

11 MARKET SPOTLIGHT

Trophy Office Building Up for Grabs in DCAn investment group is marketing one of Washington’s top-performing office

buildings, which could attract bids of around $455 million.The 380,000-square-foot property, at 1101 New York Avenue NW, boasts above-

average occupancy and asking rents. The estimated $1,200/sf valuation would be among the highest prices ever fetched in Washington.

Eastdil Secured is advising the owners — Property Group Partners of New York, Morgan Stanley Real Estate and W.R. Berkley Corp. of Greenwich, Conn.

The building’s 95% occupancy rate surpasses the 90% average for top tier Wash-ington properties. The weighted average remaining lease term is almost 10 years. The tenants include Bloomberg, British Petroleum and Ernst & Young.

The property suffered a heavy blow in 2012, when now-defunct law firm Dewey & LeBoeuf vacated some 140,000 sf. But that space was subsequently filled with a mix of

See TROPHY on Page 4

Defense Boost Seen Lifting Va. Office MarketsThe prospect of a rebound in U.S. military spending has brightened the out-

look for Northern Virginia office markets that were hard-hit by defense-sector cutbacks.

The Rosslyn-Ballston corridor, with its heavy concentration of defense contrac-tors, saw vacancy rates double in recent years due to the one-two punch of base closings and federal budget sequestration. The slowdown in leasing made it difficult to value and sell properties.

Now, owners and brokers alike are finding cause to be optimistic. The election of President Trump, putting both the executive and legislative branches in Republican hands, and the administration’s plans to increase defense spending signal a likely resurgence in leasing.

Property owners already are seeing positive signs. “It is more than a potential,” said Bruce Lane, co-founder of Meridian Group of Bethesda, Md. The firm began investing in Northern Virginia offices in 1999 and has stepped up those efforts since

See DEFENSE on Page 9

Seattle Tower Leased to Amazon Hits MarketA MetLife Real Estate Investors partnership is marketing a new Seattle office

building that’s fully leased by Amazon.com.The 373,000-square-foot property, at 1007 Stewart Street in the South Lake Dis-

trict, could attract bids of about $950/sf, or almost $355 million. CBRE is advising MetLife and its partner, Trammell Crow of Dallas.

The 21-story building, dubbed Midtown 21, was completed last year. Amazon, which signed a long-term lease, is in the process of moving in. The online retailer occupies 8 million sf in Seattle — or almost 20% of the city’s total office space.

The property includes some 380 parking spaces and a conference center. It’s within walking distance of the trendy South Lake retail district.

Another Seattle building fully leased by Amazon sold in January. A TriStar Capital partnership acquired the 291,000-square-foot Urban Union building, at 501 Fairview Avenue North, from developer Schnitzer West of Seattle for $268.7 million, or $924/sf. Newmark Grubb was the broker.

MARCH 8, 2017

Host Nabs Luxury Hollywood HotelHost Hotels & Resorts has locked up a deal to buy the W

Hollywood Hotel with an offer that cut short the marketing campaign.

The Bethesda, Md., REIT agreed to pay roughly $220 mil-lion for the leasehold interest in the 305-room hotel. The seller, a joint venture between HEI Hotels & Resorts and Gatehouse Capital, had just begun efforts to market the property. Eastdil Secured is brokering the sale.

HEI, of Norwalk, Conn., and Dallas-based Gatehouse devel-oped the hotel and an adjoining condominium tower in 2010. They shopped the hotel in 2015, but a sale never materialized. Since then, Los Angeles-area hotels have made considerable gains in revenue per room.

The property is managed by Starwood Hotels & Resorts of Stamford, Conn., as a flagship of its luxury W brand. It gen-erates significant income from seven billboards and 10,000 square feet of street-level retail space, benefiting from its loca-tion near the famed intersection of Hollywood Avenue and Vine Street.

The hotel has several upscale restaurants and bars, including Delphine Eatery & Bar, as well as a rooftop pool, a spa, 33,000 sf of event space and 265 underground parking spaces.

The deal would mark the second high-profile purchase this year by Host, of Bethesda, Md. In January, it acquired the iconic 277-room Loews Don CeSar Hotel in St. Pete Beach, Fla., for an undisclosed price.

REITs such as Host largely curbed their buying programs over the last year or so, as the stock market was valuing the firms at a steep discount to asset values. But a resurgence in valuations has REITs eyeing acquisitions again.

Abacus Back on Fund-Raising TrailApartment specialist Abacus Capital is seeking to raise $500

million of equity for its fourth value-added fund.The vehicle, Abacus Multi-Family Partners 4, would invest

in apartment properties nationwide. With leverage, it could buy some $2 billion of complexes.

New York-based Abacus often targets state capitals or col-lege towns, with a focus on properties with 200-400 units. The firm considers existing buildings, properties under construc-tion and ground-up development.

The first three funds in the series raised a combined $580 million. The third vehicle, which had its final close in 2015, has fully committed its $324 million of equity.

In addition to the value-added series, the manager oper-ates Abacus Core Income Fund 1, which targets lower-yielding investments. The vehicle held a final close in 2014 on $115 mil-lion of equity.

Abacus was founded in 2004 by chief executive Benjamin Friedman, a former principal of DRA Advisors of New York. Property acquisitions are headed by Jeff Remillard (in the Western U.S.), Justin Sims (Central U.S.) and Jim LePorte

(Eastern U.S.) Briana Succop joined this year to work on investor relations. She previously handled similar duties for Covenant Capital, a multi-family fund operator in Nash-ville.

Japanese Tenant Buys Calif. OfficesA Japanese firm last week acquired an office complex in San

Mateo, Calif., from DivcoWest Properties for about $180 mil-lion.

The deal is the first U.S. investment by Rakuten Ventures, a prominent Japanese online retailer. The company is a major tenant at the 210,000-square-foot Concar Office Park, which is 97% occupied. Salesforce.com is also a tenant.

The off-market deal was arranged after Rakuten approached San Francisco-based DivcoWest, which was advised by Newmark Grubb. The price is equivalent to $857/sf.

The Class-A complex is at 700-900 Concar Drive, less than a mile from a Caltrain station. It encompasses two five-story buildings and a one-story building.

The property was developed in 2003. DivcoWest acquired it from a California State Teachers partnership in 2015 for $134.2 million, or $627/sf.

San Mateo is on the central part of the San Francisco Pen-insula, about halfway between San Francisco and Silicon Val-ley. The area has become increasingly popular with technology companies priced out of San Francisco and the choicest Silicon Valley ZIP codes.

The central peninsula’s average occupancy rate is 92.5%, up from just under 90% in 2014, according to Avison Young. Class-A asking rents averaged $54.84/sf in the fourth quarter, a cyclical high. In San Mateo itself, Class-A asking rents average $55.20/sf.

Miller to Acquire San Diego ComplexMiller Global has struck a deal to buy a San Diego office com-

plex that was pitched as a leasing play.The Denver fund shop will pay $103 million, or $520 a square

foot, for the 198,000-sf Gateway at Torrey Hills. Cushman & Wakefield is brokering the sale for PGIM Real Estate.

The two-building property, developed in 2008, is about 80% leased, providing room to boost occupancy and revenue.

The four-story buildings, at 3570 & 3580 Carmel Mountain Road, have a host of amenities, including a fitness center, a cafe and outdoor meeting areas. Tenants include engineering firm Atkins North America, law firm Mintz Levin and Mutual of Omaha.

The 16-acre campus is in Delmar Heights, an upscale neigh-borhood about 16 miles from downtown. It has views of the nearby Torrey Pines golf course.

After PGIM put the complex on the block in September, it came close to a deal with a Mexican investment group, accord-ing to market sources. Cushman apparently turned to Miller after that deal fell through.

March 8, 2017 2Real EstateALERT

DEBT PL ACEMENT | INVESTMENT SALES | EQUIT Y PL ACEMENT | ADVISORY SERVICES | LOAN SALES | LOAN SERVICING

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©2017 Holiday Fenoglio Fowler, L.P (HFF), HFFS (HFF Securities L.P.) and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices and is a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. HFF is acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, License Number 01385740. HFF acting by and through Holliday GP Corp a Texas licensed real estate broker. HFF an Illinois licensed real estate broker.  HFF along with Corporate Realty, LA license #0000010277, a licensed Louisiana Broker.

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Closed January 2017

Atlantic Point

$208,000,000 Property Sale 795-unit, Class A Multi-housing Community

Bellport (Long Island), NY

Closed February 2017

Palms of Carrollwood

Property Sale 167,887 SF Grocery-anchored Retail Center

Tampa, FL

Closed February 2017

Advenir Castle Pines

$77,250,000 Property Sale 356-unit, Class A Multi-housing Community

Castle Pines, CO

Closed January 2017

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Closed January 2017

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Value-Added Rental Play in Calif.An Inland Empire apartment complex is being pitched to

value-added investors.The 319-unit property, in Rancho Cucamonga, Calif., is 97%

occupied. Even though it was built only 11 years ago, a buyer could make improvements, such as upgrading the appliances and lighting fixtures, and seek to raise rents.

The garden-style complex, at 7922 Day Creek Boulevard, could attract bids of about $90 million, or $282,000/unit. That would indicate an initial annual yield of about 4.75%. After renovations, the return could climb to about 5.5%. The owner, AMLI Residential of Chicago, has given the listing to Moran & Co.

The apartments have 1-2 bedrooms, nine-foot ceilings, gas fireplaces, washer/dryers and balconies or patios. The ameni-ties include a swimming pool with outdoor dining and grilling areas, and a covered lounge. There are also two business centers and a fitness center.

The property, called AMLI at Victoria Arbors, is across from Victoria Gardens, a 1.5 million-square-foot shopping center. The average occupancy rate in the surrounding Riverside-San Bernardino area is a lofty 97.5%. What’s more, construction is sparse, mitigating any concern about excessive supply. While the 2,600 units that came on line last year were a cyclical high, only 500 are slated to be completed this year.

About 30,000 jobs were created in the Inland Empire last year, according to Marcus & Millichap, with another 27,500 pre-dicted for this year.

Balboa Buying Oregon Retail CenterBalboa Retail Partners has agreed to pay about $105 million

for a former mall in Oregon that Rouse Properties converted into a well-leased power center.

The deal encompasses 609,000 square feet at the 821,000-sf Shoppes at Gateway, in Springfield, along with the land under a 99,000-sf Kohl’s. A 114,000-sf Target is separately owned and isn’t changing hands.

Los Angeles-based Balboa’s initial annual return will be about 7.5%. JLL is advising Rouse, a New York REIT that was acquired by Toronto-based Brookfield Asset Management in July.

Rouse completed its redevelopment of the once-struggling Gateway Mall to its current format in 2015. Rouse retained top tenants that included Cabela’s, Sears, grocer Walmart Neighbor-hood Market and a 17-screen Cinemark theater. It also brought in more big-box retailers, including Ashley Furniture, Hobby Lobby, Marshall’s, Petco and Ulta. Several restaurants also were added.

When the property went on the block in September, it was 98.5% occupied, with national retailers accounting for 95% of the leased space. The weighted average remaining lease term for the offered space was 7.7 years. Part of the marketing pitch was that a buyer could expand the property.

The center is at 3000 Gateway Street, about four miles north-east of downtown Eugene and the University of Oregon. It’s alongside Interstate 5, just north of the intersection with Inter-state 105. Some 70,000 vehicles pass the site each day.

Whole Foods Store Listed Outside SFA partnership has put a Whole Foods supermarket in North-

ern California back on the block with a reduced asking price of $28.8 million.

The 39,000-square-foot block of retail space occupied by the store is at the bottom of a residential building at 790 De Long Avenue in the North Bay town of Novato, about 25 miles north of San Francisco. At the estimated value of $738/sf, the buyer’s initial annual yield would be 4.9%.

The partnership, led by JB Matteson of San Mateo, Calif., shopped the property for $30.2 million via DTZ in 2015, but no sale resulted. Marcus & Millichap has the listing this time.

Whole Foods moved in when the building was completed in 2010. Its net lease runs through 2030, with six extension options of five years apiece. The current rent is $36.82/sf, or $1.4 million annually. There are rent bumps of 7-8% every five years, with the next one due in April 2020. The offering includes a two-level garage with 199 spaces.

The JB Matteson partnership bought the building, known as Millworks, for $67 million in 2012 from a joint venture led by Signature Properties of Pleasanton, Calif. It will retain the 124 apartments above the store.

Some 29,000 vehicles pass the site daily. The average house-hold income within a three mile radius is $112,000.

Trophy ... From Page 1

tenants.Asking rents exceed the almost $79/sf average for top-tier

properties, thanks in part to the building’s freestanding design, which allows for expansive views from all four sides.

The 12-story property, which was completed in 2007, includes rooftop terraces, street-level retail space, a fitness cen-ter and three levels of underground parking. It has a LEED gold designation.

The glass-clad building is on Eye Street between 11th and 12th Streets, near the point where Eye Street and New York Avenue merge. The site, within several blocks of the White House, is surrounded by upscale shops, restaurants and hotels in the East End.

Several other high-caliber offices have been listed in the city within the past two months. JBG Cos. of Chevy Chase, Md., is angling for a record per-foot price for the 128,000-sf building at 900 16th Street NW. That listing with JLL is expected to attract bids of up to $1,300/sf, or $166 million, which would surpass the $1,102/sf mark set in 2015 when Jamestown Properties of Atlanta bought the 461,000-sf America’s Square complex, at 300 New Jersey Avenue NW and 51 Louisiana Avenue NW, for $508 million.

Meanwhile, Cushman & Wakefield is marketing a major-ity interest in the 386,000-sf building at 1625 Eye Street NW, which is valued at about $320 million, or $829/sf. That prop-erty is owned by a partnership between HSBC, Edge Fund Advisors of Washington and Brookfield Property Partners of New York.

March 8, 2017 4Real EstateALERT

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Warehouses Offered in Chicago AreaCenterPoint Properties is marketing a 2.5 million-square-

foot package of Chicago-area industrial properties that could fetch $120 million from value-added investors.

The offering encompasses 23 buildings spread across nine submarkets. At the estimated value of $48/sf, a buyer’s initial annual yield would be 5.9%. HFF has the listing. It’s unclear whether CenterPoint, of Oak Brook, Ill., will accept bids on individual properties.

The portfolio is 82.3% leased by 26 tenants. The marketing campaign is emphasizing the potential to boost occupancy and raise below-market rents as leases roll over.

The 604 million-sf Chicago industrial market was 92.9% leased at the end of the year, with an average asking rent of $4.77/sf, according to JLL. The occupancy rate has been climb-ing steadily since 2010, when it stood at 88% and asking rents averaged $4.13/sf.

The listing takes in a wide variety of building sizes and vin-tages. Six warehouses were either completed or last renovated since 2000, seven during the 1990s, eight in the 1970s and one each in 1965 and 1955. They range in size from 15,000 sf to 530,000 sf, with ceiling heights of 11-30 feet. Nineteen are fully occupied, two are 40-50% leased and two are vacant.

The largest concentrations are in the submarkets of West Cook (758,000 sf), South Suburbs (645,000 sf), Fox Valley (276,000 sf) and North DuPage (266,000 sf).

CenterPoint, which is owned by a Calpers partnership, con-trols 56.6 million sf of industrial properties nationally.

New Apartments for Sale Near BostonA suburban Boston apartment complex completed last year

is on the block.The 194-unit Vanguard Waterfront Square, in Revere, Mass.,

could attract bids of about $70 million, or $360,000/unit. At that price, the buyer’s initial annual yield would be some 5.5%. The owner, Covington Realty of Chicago, has given the listing to ARA Newmark.

The complex, encompassing two seven-story buildings, is at 660 Ocean Avenue, along Revere Beach and about 10 miles north of Boston.

The occupancy rate is 95%. The units have 1-3 bedrooms, nine-foot ceilings, stainless-steel appliances, washer/dryers, laminate floors and upscale touches like television screens in bathrooms. Most apartment have views of Massachusetts Bay. The property features a fitness center, bike storage, a pet grooming station and a clubhouse.

Greater Boston’s booming economy has fueled steady household formation and rental demand. Even though 25,000 apartments have come on line since 2012, the average occu-pancy rate is a lofty 96.7%, and average rents grew 5.9% last year, according to Marcus & Millichap. The brokerage ranks Boston the third-strongest market in the country, based on a variety of real estate and economic fundamentals, behind only

Los Angeles and Seattle.The demand for apartments, particularly high-end units,

has expanded beyond downtown Boston and nearby suburbs west of the city. East Boston and close-in suburbs to the north, like Revere, have seen significant development and equal demand.

Survey: Investors Ready to Buy in 2017Two-thirds of commercial real estate investors intend to be

net buyers this year, and value-added properties continue to be their preferred targets, according to a CBRE survey.

The annual CBRE Americas Investor Intentions Survey found that 67% of buyers focused on the the U.S., Canada and Latin America intend to buy more than they sell in 2017. That’s up from 65% last year and 60% two years ago.

Some 39% of respondents prefer to chase value-added deals, about even with last year. Prime or core properties are the pre-ferred investment choice for 20%, down from 29% last year. Meanwhile, 25% intend to pursue “good secondary” proper-ties, up from 17% — a sign that investors continue to pursue “elusive yield and income,” according to the report.

However, when it comes to buying secondary assets, the survey found that “risk tolerance has declined significantly from 2016.” Only 10% of investors said they are willing to toler-ate more risk on those purchases this year, compared with 19% the previous year.

Asked to name the greatest threat to property markets in the Americas, 22% cited a global economic shock affecting leas-ing demand. A faster-than-expected rise in interest rates was named the top threat by 21%, while 15% worried most about overbuilding or excess supply.

Industrial was named the most-attractive asset class by 38% of investors, up from 23% last year. It replaced multi-family, which was the second-most popular class (28%), followed by office (18%), retail (8%), niche (5%) and hotel (4%).

Los Angeles was picked as the top metropolitan area to invest in for the second year in a row. Dallas moved up one spot to second place, and New York fell one notch to third. The only non-U.S. market to crack the top 10 was Toronto, which tied for eighth place.

CBRE surveyed 963 investors from around the world — nearly double last year’s buyer count — that invest in the U.S., Canada and Latin America. The poll, to be released today, was conducted from Jan. 6 to Feb. 6.

March 8, 2017 6Real EstateALERT

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Novel Retail Center Listed in Calif.A partnership has listed a suburban San Diego shopping

center with a twist: It is anchored by two grocery stores with long-term leases.

The 128,000-square-foot Gateway Marketplace, at 40 North 4th Avenue in Chula Vista, Calif., has an estimated value of $43 million. At that price, the buyer’s initial annual yield would be 5.5%. HFF is representing the owners, Brixton Capital of San Diego and ALTO Real Estate Funds of Tel Aviv. Brixton is an opportunistic investment arm of Brutten Global, the family office of Westcore Properties founder Marc Brutten.

The marketing campaign emphasizes the property’s stability. The occupancy rate is 98.7%, with national retailers account-ing for 94% of the space. The weighted average remaining lease term is 11.6 years, and 93% of the income is generated by ten-ants with at least 10 years remaining.

The anchor tenants are grocers Smart & Final (32,000 sf) and Aldi (19,000 sf). Their leases run until 2031. Other major tenants include Hobby Lobby (50,000 sf until 2026), Party City (15,000 sf until 2027) and Mattress Firm (5,000 sf until 2027).

Gateway Marketplace was built in 1997 and renovated in 2016. It has 540 parking spaces.

The center is on 10 acres at the corner of C Street, seven miles south of downtown San Diego and less than half a mile east of San Diego Bay. Some 43,000 vehicles pass the site daily. There are 172,000 residents with an average household income of $59,000 within three miles.

March 8, 2017 7Real EstateALERT

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Calif. Tech Firm Plans Sale-LeasebackA large San Jose office property is about to hit the block as a

sale-leaseback opportunity.The 570,000-square-foot complex, at 130 Holger Way

in North San Jose, is owned and fully occupied by Brocade Communications. Newmark Grubb is running the marketing campaign. Bids are expected to hit about $200 million, or $351/sf.

Brocade, a company specializing in data-storage systems, would look to sign a long-term lease with a buyer.

The three-building campus, developed in 2010, is just off Route 237 (the Southbay Freeway). It has many of the “bells and whistles” favored by technology companies, such as open meeting spaces, theater-style conference rooms and a cafeteria.

San Jose has long been the laggard of the Silicon Valley office market, but demand for high-quality space is on the upswing. Rents at newer Class-A properties jumped 11.5% last year, according to Marcus & Millichap, and are forecast to increase another 10% this year.

Defense ... From Page 1

2012. In the last few months, he’s seen an uptick in tenant tours in the area. “In general, the confidence level of [prospective tenants] is much greater,” Lane said.

The White House said last week that Trump’s budget proposal for the next fiscal year would increase defense spending by $54 billion, or roughly 10% from the current level. The expectation is that Northern Virginia would benefit from the boost, as com-panies that provide research and other services to the Pentagon look to expand.

“Virginia is the R&D epicenter of defense, not just nation-ally, but globally,” said John Sikaitis, a managing director of office research in JLL’s Washington office. “Virginia is the real winner.”

For the past several years, those ties to defense spending were problematic. From 2011 through 2016, the average annual occupancy rate for office space in the Rosslyn-Ballston area was 80% — compared with a 91% average for the previous 15 years,

according to JLL. At the end of last year, it stood at 77%.The falloff in leasing corresponded with the restraints on

military spending imposed by the Budget Control Act of 2011. That came on the heels of a base-closings initiative that led to cuts in Defense Department leasing.

Along with Trump’s call for a defense buildup, there are other positive signs for improved occupancy in Northern Virginia. For one, some existing supply is being taken offline, as older proper-ties deemed functionally obsolete are redeveloped. What’s more, expanding industries such as cyber-security are poised to take up more space, said Drew Flood, a broker at Cushman & Wakefield.

In addition, close-in suburbs are likely to benefit from a gen-eral upswing in Washington-area leasing as lobbyists gear up for potential major legislative action after six years of divided government.

“When Congress is functional and they are approving legis-lation, [Greater Washington] tends to be not just a growth mar-ket, but a boom town,” said Sikaitis at JLL. The firm’s research shows that over the last 15 years, the market has absorbed 36.5 million square feet of office space during the six years when the presidency and Congress were in partisan alignment — and lost 6 million sf of occupancy in the nine years when the branches were divided.

Investors looking at the Rosslyn-Ballston area say this could be a good time to get in, when buildings can be acquired at below-replacement cost and at yields higher than better-per-forming submarkets in the region.

“I feel very, very good about buying now,” said Robert Murphy, co-founder and managing principal of MRP Realty of Washington. He expects institutional investors to re-enter the market within 24-30 months, after a few quarters of positive net absorption. “Ide-ally there will be a pretty good execution for us.”

Already, buyers are willing to price less risk into deals cur-rently on the block.

“Six months ago, we were getting killed on worst-case sce-nario,” said Eric Berkman, a broker at Cushman. Investors then were underwriting any defense-related tenants as likely to vacate when their leases expired, he said. “But now the think-ing is maybe these guys aren’t going to leave. It’s starting to change right in front of your eyes.”

March 8, 2017 9Real EstateALERT

ON THE MARKET

ON THE MARKET

Multi-Family Property

Size

Estimated Value

Owner

Broker

Color

Four garden-style apartment properties in Central Pennsylvania

412 units 93% occupied

$38 million $92,000/unit Yield: 6.5%

Equus Capital, Yardley, Pa.

HFF Portfolio encompasses the 128-unit Village Green at 700 East Will Street, Elizabethtown; the 112-unit Greenview Terrace at 500 Alden Drive, Lancaster; the 95-unit Barrcrest Manor at 1705 Marietta Avenue, Lancaster; and the 87-unit Lebanon Court at 1102 Jackson Boulevard, Lebanon. Bids for individual properties will be considered. Pitch is that the valuations are roughly 25% of replacement cost and unit renovations would increase the yield.

March 8, 2017 10Real EstateALERT

CALENDARCALENDAR Main Events Dates Event Location Organizer Information June 25-27 U.S. Real Estate Opportunity & Private Fund Investing Newport, R. I. IMN www.imn.org

Nov. 14-16 REIT World Dallas NAREIT www.reit.com

March 8-9, 2018 PREA Spring Conference Beverly Hills PREA www.prea.org

Events in US Dates Event Location Organizer Information March 14 Breakfast Meeting New York RELA www.rela.org

March 14-15 Bank Special Asset Forum: Real Estate, C&I & SBA Fort Lauderdale IMN www.imn.org

March 15-16 Real Estate Private Equity Summit New York iGlobal Forum www.iglobalforum.com

March 15-17 Multifamily Conference Dallas Crittenden www.crittendenconferences.com

March 16 Midwest Institutional Real Estate Investor Forum Chicago Markets Group www.marketsgroup.org

March 29 New Jersey Gold Coast & Spring Multifamily Summit Jersey City, N.J. CapRate Events cre-events.com

March 29-31 Real Estate Lending Conference Orlando ABA www.aba.com

April 4 Real Share Houston Houston Globe Street www.globest.com

April 4-5 Forum on Land, Homebuilding & Condo Dev. Miami IMN www.imn.org

April 4-5 Global Institutional Real Estate Investor Forum New York Markets Group www.marketsgroup.org

April 5-6 PERE Global Investor Forum Los Angeles PERE www.perenews.com

April 5-6 Real Share Net Lease New York Globe Street www.globest.com

April 5-7 Student Housing Austin InterFace interfaceconferencegroup.com

April 6 REITS in the New World Order New York NYU Schack www.scps.nyu.edu

April 11 Breakfast Meeting New York RELA www.rela.org

April 19 Greater NY Date Center Summit New York CapRate Events cre-events.com

April 21 BLIS West 2017 Los Angeles Bisnow www.bisnow.com

April 24-25 Women’s Real Estate Investment Summit New York Kayo Conf. Series womensrealestatesummit.com

April 25 Real Share LA Los Angeles Globe Street www.globestreet.com

April 26-27 Real Estate Investment Summit 2017 Boca Raton, Fla. Opal Financial www.opalgroup.org

April 26-28 National Real Estate Conference Costa Mesa, Calif. Crittenden www.crittendenconferences.com

April 26-29 SIOR Spring World Conference New Orleans SIOR www.sior.com

April 27 Real Estate Private Equity Summit West San Francisco Eisner Amper eaprivateequity.com

May 2-4 ULI Spring Meeting Seattle ULI www.uli.org

May 11-12 Real Estate Family Office & Private Wealth Mgmt. Huntington Beach, Calif. IMN www.imn.org

May 15 Credit Risk Transfer Symposium New York IMN www.imn.org

May 16-17 Real Estate CFO & COO Forum San Diego IMN www.imn.org

May 16-17 PERE CFOs & COOs Forum New York PERE www.perenews.com

May 18-19 Middle-Market Multifamily Forum Huntington Beach, Calif. IMN www.imn.org

May 18-19 World Real Estate Forum Cambridge, Mass. MIT www.mitworldreforum.com

Events Outside US Dates Event Location Organizer Information March 14-17 MIPIM Cannes, France Reed MIDEM www.mipim.com

March 29-31 Real Estate Investments Conference Rio de Janeiro, Brazil Intl. Bar Association www.ibanet.org

April 5 Canada East Institutional Real Estate Investor Forum Toronto Markets Group www.marketsgroup.org

April 20-21 Real Estate Investment: Valuation & Financing Singapore Fitch Learning www.fitchlearning.com

April 23-24 Real Estate Investment: Valuation & Financing Dubai Fitch Learning www.fitchlearning.com

April 27 Germany Institutional Real Estate Investor Forum Munich Markets Group www.marketsgroup.org

May 3-4 Real Estate Investment World Asia 2017 Singapore Terrapinn www.terrapinn.com

May 11 PERE Summit: Europe London PERE www.perenews.com

To view the complete conference calendar, visit The Marketplace section of REAlert.com

March 8, 2017 11Real EstateALERT

Northern Virginia Office Properties Pending and completed sales of large properties have already reached almost $1.3 billion this year,

putting the market on pace to surpass last year’s $2.5 billion total.Once a sleepy submarket for sales, Tysons is benefiting from new Metrorail stops and mixed-use

construction that has created the kind of “live, work, play” communities favored by both tenants and investors.

The pending sale of the Waterview building in Rosslyn for $465 million, or $647/sf, will set both total and per-foot price records.

On the Market Hit SF Estimated ValueProperty Seller Market (000) ($Mil.) (Per SF) BrokerGreensboro Park, Tysons Beacon Capital February 504 $150 $298 JLLTysons Dulles Plaza, Tysons KBS Realty March 486 150 309 Eastdil SecuredTysons International Plaza, Tysons Tishman Speyer, Abu Dhabi Inv. March 448 135 301 HFF Campus at Sunrise, Reston Grosvenor America December 254 60 236 Cushman & Wakefield460 Herndon Parkway, Herndon Parmenter Realty March 205 44 215 Cushman & Wakefield

Recent Deals SF Sales PriceProperty Buyer Closed (000) ($Mil.) (Per SF) BrokerWaterview, Rosslyn Morgan Stanley Real Estate (Pending) 647 $465 $719 Eastdil SecuredPentagon Centre, Arlington (majority stake) GIC February 911 385 423 Cushman & WakefieldTysons Metro Center, Tysons Meridian Group February 764 227 297 HFFLiberty Center 1-3, Chantilly Government Properties Income December 409 110 269 JLLTysons Technology Center, Tysons CentralColo, Legacy Investing December 280 96 343 Cushman & Wakefield2 buildings in Tysons (90% stake) Rockpoint Group February 358 91 254 Cushman & WakefieldStonecroft 1&2, Chantilly Drawbridge Realty December 320 74 230 CBREShenandoah Building, McLean (Unidentified) (Pending) 197 63 320 Cushman & Wakefield1577 Spring Hill Road, Tysons (Unidentified) (Pending) 117 42 359 Transwestern3112-3120 Fairview Park Dr., Falls Church Velocis, Moore & Associates February 190 39 205 JLL

Note: For the sales of a stake, the full size and value of the property are shown.

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March 8, 2017 12Real EstateALERT

director of the Ithaca, N.Y., school’s real estate career-management program. Before that, he spent nearly two years at C-III Capital as a senior managing direc-tor and about seven years at Cornell’s investment office.

Avison Young is expanding its invest-ment-sales team in the Philadelphia area. Broker Jim Pasquarella started last week as a senior vice president. He was previously a vice president at CBRE, where he worked for more than 11 years. Pasquarella joins managing director David Fahey and broker Adam Gillespie. The firm plans to continue building out the capital-markets team with additional hires, including a debt specialist.

Charles Gibbs joined Marc Realty Capital of Chicago last month as a vice president. Gibbs works on acquisitions nationally, particularly in the hospital-ity, multi-family and retail sectors. He works under David Ruttenberg,

a principal in the development and management company and its director of acquisitions and investments. Gibbs moved over from Sperry Van Ness, where he worked for nearly three years.

Edward Benton joined Colliers Inter-national last month as an investment-sales broker in Houston. He is a vice president and focuses on properties net-leased to single tenants, with an emphasis on the retail sector. Benton had been a vice president at Hunington Properties of Houston, spending three years at the firm. Before that, he was at Marcus & Millichap for seven years.

Alternative-asset management firm New Mountain Capital has added a vice president to its net-leased real estate team in New York. Tom Decarlo joined last month from Swiss investment shop Partners Group, where he was a vice president focusing on acquisitions and development. He previously worked at Delta Associates and JBG Cos. Decarlo reports to managing director Teddy Kaplan, who moved over from Angelo, Gordon & Co. last year to build a net-leased real estate practice. The team

also includes associate Chelsea Mandel, who joined at yearend from Starwood Capital.

Broker Hande “Heidi” Castiglione has left Marcus & Millichap in Houston. Her plans are unknown. Castiglione joined the firm early last year as a senior asso-ciate, after spending three years at bou-tique apartment brokerage LS Realty.

Acquisitions and development pro Fred Piumelli left Cogswell Lee Development last month to start an e-commerce shop, PopUp HQ. He spent two-plus years at New York-based Cogswell and previously worked at Taurus Investment Holdings and bou-tique brokerage Studley.

HFF wants to add a senior real estate analyst to its office investment-sales team in Miami. The firm was the top broker of office properties in South Florida last year, with a 41.6% share market share, besting its two closest competitors combined. Candidates should have 3-5 years of experience and familiarity with Argus. Contact Tracey Goo at tgoo@hfflp.com.