BIG RED LANDS A BIG BANK
In what’s being called milestone event for all parties involved,
Northern Trust Co. Inked a deal for 462,000 sf at 333 S. Wabash St.
in Chicago. According to Newmark Knight Frank, which served as
broker, it was the culmination of a largely complex, multi-transac-tional deal that started with former occupant CNA selling and
vacating its headquarters there in 2015, followed by the asset’s 2016
acquisition by the John Buck Co. and Morgan Stanley.
The lease will allow Northern Trust, the city’s largest locally head-quartered bank, to grow its business in new and improved space at
the building, known as “Big Red” for its signature exterior color. The
NKF team of Bill Rolander, executive managing director, and Jon
Cordell, senior managing director, served as John Buck Co.’s agents.
CBRE’s Todd Lippman, Todd Doney, James Whalen, Maura
Mahoney and Scott Brandwein represented the tenant in the 15-year
deal, which went down as the largest in Chicago.
FOR SOME PLAYERS, SIZE MATTERS
Commercial real estate is all about size—as in how many square
feet, stories and of course, dollars. We should add number of assets
to that list as well, given the volume of portfolio trades last year.
Here’s a look at some of 2017’s most significant package deals.
Some buyers were lucky enough to land bulk purchases of one
in the most coveted asset classes in recent years—industrial. An off-market deal added 12 facilities totaling nearly 4.3 million sf to
Duke Realty Corp.’s holdings. Bridge Development Partners LLC
and Banner Oak Capital Partners sold the assets, which brought in
some $700 million and are located throughout New Jersey, Florida
and California. The CBRE National Partners team facilitating the
deal included EVP Brian Fiumara, vice chairman Michael Hines,
Bridge Industrial Portfolio
SVP Brad Ruppel and Lauren Dawicki, director.
Another 183 facilities changed hands in a $1.07 billion acquisition
by DRA Advisors. The 20-million-sf portfolio is 94% leased and
located in 21 US markets, including major industrial like Chicago,
Dallas and Atlanta. The seller, Cabot Fund II, an affiliate of Cabot
Properties Inc., had tapped Cushman & Wakefield to advise on its
sale, while DRA Advisors retained C&W on various sale and leasing
assignments previously contracted by Cabot.
The sale of the portfolio completed the disposition of the properties held by the Cabot Industrial Value Fund II, which was
launched in 2005 with an initial allocation of $450 million in
equity. The 21-market C&W team was led by executive managing
directors Jim Carpenter, Tom Powers, Stewart Calhoun and Jud
Clements. Eastdil Secured also represented Cabot.
TA Realty LLC, on behalf of Realty Associates Fund IX LP, sold a
45 assets in 12 states to Brookfield-managed real estate funds for
$855 million. JLL Capital Markets helped close the transaction and
secured $475.5 million in acquisition financing for the deal, which
closed in two parts—a 7.6 million sf of logistics facilities and a
1.1-million-sf package of nine office assets.
JLL’s Global Capital Markets team also advised Swedish pension
fund manager Alecta in its $2.1-billion sale of 47 office, retail, multifamily and industrial assets in the US and United Kingdom. A
global investment bank purchased all 26 UK assets, aggregating 1.5
million sf, for approximately $375 million, while Blackstone paid
$1.7 billion for the 21 US properties.
Blackstone used $1.06 billion in financing to buy the three-mil-lion-sf portfolio. The funds were split between a GSE, which provided $93 millioon for the multifamily component, and the Royal
Bank of Canada, which covered the office, retail and industrial
assets. JLL Capital Markets also helped to arrange the debt, along
with a Fried Frank team of partners Jonathan Mechanic, Ross Silver
and Julian Chung, as well as team members Cyril Touchard,
Samantha Kaufman, Vincenzo Sessa and Krisia Ildefonso.
In another office-related deal, Mack Cali and Marcus Partners
paid a sum of $390 million for RXR Realty’s 1.3-million-sf portfo-lio comprised of seven of Northeast New Jersey’s prime properties. HFF brokered the sales on behalf of RXR Realty and also
arranged $124.5 million in financing from Goldman Sachs and
Citibank for Mack-Cali, which purchased six of the seven buildings. The HFF team included senior managing directors Jose
Cruz and Jon Mikula, and managing director Kevin O’Hearn.
Also working on the deal were Ricardo Cardoso, EVP and CIO, of
Mack-Cali; Bill McAvoy, a principal with Marcus Partners; and
Joseph Dyckman, a director with Citigroup.
Foreign investors played a big role in last year’s bulk purchases,
as the law firm of Skadden can relate. Australian fund manager
Queensland Investment Corp. paid $1.6 billion for Forest City
Realty Trust Inc.’s ownership interest in 10 regional malls. The deal
marked Forest City’s exit from shopping center retail and the US
retail expansion for QIC, was advised by a Skadden team led by
Meryl Chae, David Levy and Jonathan Ko.
BEST OF 2017...continued on 47