Century Plaza. The buyers were a joint venture of Crown
Acquisitions, Highgate Holdings, Vornado Realty Trust, Oxford
Properties Group and JP Morgan Asset Management. Wachtel
Missry LLP’s Morris Missry and Mia Stevens-Haynes, of the real
estate department, and Scott Lesser, corporate department,
inked the deal for the buyers.
According to the attorneys, Crown and Highgate initially
negotiated the purchase and brought Oxford and Vornado into
the deal after the contract was signed. Goldman Sachs Group
Inc. provided an $800-million CMBS loan for the purchase.
The Midtown Manhattan property is over 90% occupied by
such tenants as Polo Ralph Lauren (283,000 square feet) and
the Memorial Sloan-Kettering Cancer Center (101,000 feet),
but the real attraction of the asset is the 71,000 square feet of
retail space on its ground floor; retail rents in the area can go
as high as $2,500 a foot. A plus was the five-year lease extension
signed by the lead retail tenant right before the acquisition.
Crate & Barrel, which occupies 52,000 feet, agreed to a higher
rental rate in exchange for a $55-million payment from Carlyle
(see Leasing Deals of the Year).
Carlyle earned a pretty penny as well, having paid $680 million
for the building in 2008. Between then and the time of the sale,
the building was completely renovated and more than 400,000
square feet of leases were signed.
OTHER NOTABLE SALES OF 2013
THE DEAL: The $2.3B ($90,000 per unit) sale of a multifamily portfolio consisting of 71 class A-/B+ garden-style properties totaling
25,685 units mainly throughout the SW and SE. The deal was the largest non-strategic multifamily transaction of 2013.
BUYER: Blackstone Real Estate Partners (Frank Cohen, Nadeem
Meghji, Olivia John, Paolo Servado, Jenny Wang)
SELLER: GE Capital
WHAT’S SO SPECIAL: The interest transfer required consent from
each of GE’s 15 existing operating partners, and BREP had to assume
63 loans on individual assets across 18 lenders.
THE DEAL: The $430M sale of 44 self-storage properties, encompassing 2.7M sf across five states.
SELLER: Stor-All Storage (Jeff Anderson, CEO)
BUYER: Public Storage (Mike McGowan, Director of Acquisitions)
WHAT’S SO SPECIAL: This was the largest transaction in the self-storage industry in 2013 and is the second-largest transaction in the
history of the self-storage industry, between a small family company
and the largest self-storage company in the world. The deal closed in
just 110 days.
THE DEAL: The $660M sale of the Park Lane Hotel, a 605-room NYC
BUYERS: JV of the Witkoff Group, Jynwel Capital, Highgate Holdings,
Macklowe Properties and Vector Group
SELLER: Leona M. and Harry B. Helmsley Charitable Trust
ATTORNEYS: Kasowitz, Benson, Torres & Friedman; Paul Hastings
LENDERS: Wells Fargo; Criterion Real Estate Capital
WHAT’S SO SPECIAL: The price tag factored out to be a hefty $1.1M
THE DEAL: $140M purchase of a 50% JV stake in Chicago’s Water
BUYER: UBS AG’s Trumbull Property Fund
SELLER: AEW Capital Management LP, on behalf of Alcatel-Lucent
BROKER: Eastdil Secured
WHAT’S SO SPECIAL: The 778,000-sf property is the largest retail
asset on the Magnificent Mile. The purchase price factors out to be
about $1,040 per sf and values the mall at $810M, making it the most
expensive property to trade in Metro Chicago in 2013. GGP owns the
other 50% stake.
THE DEAL: The $113.6M sale of First Solar’s 1.33M-sf manufacturing
plant in Mesa, AZ
BUYER: Everest Apple Inc.
SELLER: First Solar Inc.
BROKER: Cushman & Wakefield (Jim Wilson and Michael White)
WHAT’S SO SPECIAL: This was the largest real estate transaction in
Arizona for 2013. Designed to manufacture solar panels, employing
600 workers, the plant never was put into use. The buyer’s identity
was not disclosed at the time negotiations started. Apple bought the
property for its supplier, GT Advanced Technologies, to manufacture
high-tech glass for Apple products. Completed in just 45 days, the
deal will result in 1,300 construction jobs and 700 Apple manufacturing jobs when the facility is brought on line.
A Stor-All facility in Boca Raton, FL