Friday, July 28, 2017
Thursday, July 27, 2017
Hersha Hospitality Buys The Westin Hotel in Philadelphia
LaSalle Hotel Properties sold The Westin Hotel at 99 S. 17th St. in Philadelphia, PA for $135 million, or about $459,000 per room, to Hersha Hospitality Trust.
The seller acquired the asset from HEI Hotels & Resorts for $145 million ($493,000 /room) back in September 2010, according to CoStar data.
The 14-story, 240,006-square-foot hospitality building originally opened as the Ritz-Carlton in 1990 and was renovated in 2015. It sits on one acre in the Market Street West submarket, part of the mixed-use Liberty Place development and in close proximity to the new Comcast Innovation Tower, Rittenhouse Square, Pennsylvania Convention Center and University City. The Westin flag is operated under Starwood Hotels & Resorts Worldwide.
The hotel consists of 294 guest rooms including 19 suites, 16,600 square feet of meeting space and a 7,500-square-foot ballroom, on-site restaurant and bar/lounge/nightclub, subterranean parking garage, and boasts an 84-percent average occupancy and RevPAR at $188.73. In a statement, Hersha reported the Westin sale resulted in a 7.8% CAP rate based on LTM, and for fiscal year 2016 the hotel had an average daily rate (ADR) of $225.
The buyer financed the acquisition in-part with proceeds from the sale of three suburban Hyatt extended-stay properties on the West Coast that occurred around the same time and resulted in $130.5 million in net proceeds for the hospitality-focused REIT. Hersha's Philadelphia cluster also includes The Rittenhouse Hotel and the Hampton Inn Convention Center.
"The successful closing of this transaction marks the 24th month of our capital recycling campaign during which we sold approximately $850 million of mature, stabilized hotels and successfully deferred $270 million of taxable gains with $816 million of accretive acquisitions," said Jay H. Shah, CEO of Hersha. "In addition to refining our portfolio’s market mix to urban gateway and coastal destinations, our improved portfolio quality focuses our capabilities on hotels with higher RevPAR and EBITDA growth potential in our core markets. We are pleased to acquire the Westin at an attractive basis, expanding our Philadelphia cluster to include the leading corporate hotel in the market."
www.omegare.com
The seller acquired the asset from HEI Hotels & Resorts for $145 million ($493,000 /room) back in September 2010, according to CoStar data.
The 14-story, 240,006-square-foot hospitality building originally opened as the Ritz-Carlton in 1990 and was renovated in 2015. It sits on one acre in the Market Street West submarket, part of the mixed-use Liberty Place development and in close proximity to the new Comcast Innovation Tower, Rittenhouse Square, Pennsylvania Convention Center and University City. The Westin flag is operated under Starwood Hotels & Resorts Worldwide.
The hotel consists of 294 guest rooms including 19 suites, 16,600 square feet of meeting space and a 7,500-square-foot ballroom, on-site restaurant and bar/lounge/nightclub, subterranean parking garage, and boasts an 84-percent average occupancy and RevPAR at $188.73. In a statement, Hersha reported the Westin sale resulted in a 7.8% CAP rate based on LTM, and for fiscal year 2016 the hotel had an average daily rate (ADR) of $225.
The buyer financed the acquisition in-part with proceeds from the sale of three suburban Hyatt extended-stay properties on the West Coast that occurred around the same time and resulted in $130.5 million in net proceeds for the hospitality-focused REIT. Hersha's Philadelphia cluster also includes The Rittenhouse Hotel and the Hampton Inn Convention Center.
"The successful closing of this transaction marks the 24th month of our capital recycling campaign during which we sold approximately $850 million of mature, stabilized hotels and successfully deferred $270 million of taxable gains with $816 million of accretive acquisitions," said Jay H. Shah, CEO of Hersha. "In addition to refining our portfolio’s market mix to urban gateway and coastal destinations, our improved portfolio quality focuses our capabilities on hotels with higher RevPAR and EBITDA growth potential in our core markets. We are pleased to acquire the Westin at an attractive basis, expanding our Philadelphia cluster to include the leading corporate hotel in the market."
www.omegare.com
Colony NorthStar Picks Up $201 Million Warehouse Portfolio Along I-95 Corridor
Colony Northstar has finalized a deal to acquire $201 million worth of industrial real estate along the I-95 corridor between Maryland and Delaware from fellow institutional investor TA Realty.
The Los Angeles-based Colony Northstar paid nearly $72 per square foot for the portfolio, which totals 2.8 million square feet over 20 properties with the highest concentration located in the Baltimore MSA.
The Mid-Atlantic portfolio, which includes the seven-building DeSoto Business Park in Baltimore, is 94% leased to 64 tenants headlined by McCormick & Co., Price Modern, Sardo & Sons Warehousing, Gourmet Bakery, MXD Group and Capitol Express. The remaining assets total 434,969 square feet and are located in Newark, DE and Aston, PA.
www.omegare.com
The Los Angeles-based Colony Northstar paid nearly $72 per square foot for the portfolio, which totals 2.8 million square feet over 20 properties with the highest concentration located in the Baltimore MSA.
The Mid-Atlantic portfolio, which includes the seven-building DeSoto Business Park in Baltimore, is 94% leased to 64 tenants headlined by McCormick & Co., Price Modern, Sardo & Sons Warehousing, Gourmet Bakery, MXD Group and Capitol Express. The remaining assets total 434,969 square feet and are located in Newark, DE and Aston, PA.
Loan Servicing Co Leases 72,000 SF at Horsham Office Bldg
Bayview / Lakeview Loan Servicing, a residential and commercial mortgage loan servicer focused on helping homeowners preserve ownership, has leased 72,381 square feet in the office building at 507 Prudential Rd. in Horsham, PA.
The 100,710-square-foot building was constructed in 1988 by Lotz Realty, Inc. and was renovated in 2001. It sits on 6.2 acres in the Horsham/Willow Grove submarket of Montgomery County.
Bayview and Lakeview will be occupying the majority of the single-story building when its lease commences later this year.
www.omegare.com
The 100,710-square-foot building was constructed in 1988 by Lotz Realty, Inc. and was renovated in 2001. It sits on 6.2 acres in the Horsham/Willow Grove submarket of Montgomery County.
Bayview and Lakeview will be occupying the majority of the single-story building when its lease commences later this year.
www.omegare.com
Wednesday, July 26, 2017
Iconic Centre Square Office Complex In Philadelphia Trades For $328M
by Steve Lubetkin, Globest.com
In the largest office transaction in Philadelphia history, the iconic Centre Square, a two-building, 1.8-million-square-foot, class A, multi-tenant office complex in Philadelphia, traded from Equity Commonwealth REIT to an affiliate of Nightingale Properties, for a reported $328 million. The building is perhaps best-known for the Claes Oldenburg sculpture of a clothespin on the plaza of the property’s northwest corner facing Market Street at City Hall’s Dilworth Plaza.
“Centre Square is a major part of Philadelphia’s fabric and attracted investor interest and capital commitments from around the globe. The asset sits across from Dilworth Park and City Hall and above the mass transit network. It is the best-located set of office towers in the Philadelphia CBD. We are honored to have been chosen to represent Equity Commonwealth in the sale of this landmark asset.”
Located at 1500 Market Street, in the heart of Philadelphia’s dynamic Central Business District, the office complex is an iconic part of the Philadelphia skyline. Built in 1974, the complex consists of a 36-story East Tower and a 43-story West Tower, which houses market leading tenants including the University of Pennsylvania Health System, Towers Watson, PHMC, Saul Ewing, Dilworth Paxson and the mortgage insurer, Radian.
In addition to a parking garage that can accommodate 450 vehicles, Centre Square also includes a 41,000 square-foot retail component with several shops, stores and restaurants. In 2015, the complex was awarded an Energy Star Label and the BOMA 360 Designation.
Nightingale Properties—which owns multiple properties throughout Philadelphia and the U.S., including 1635 Market Street, 1500 Spring Garden Street and 1835 Market Street—has plans to do an extensive renovation at Centre Square.
www.omegare.com
In the largest office transaction in Philadelphia history, the iconic Centre Square, a two-building, 1.8-million-square-foot, class A, multi-tenant office complex in Philadelphia, traded from Equity Commonwealth REIT to an affiliate of Nightingale Properties, for a reported $328 million. The building is perhaps best-known for the Claes Oldenburg sculpture of a clothespin on the plaza of the property’s northwest corner facing Market Street at City Hall’s Dilworth Plaza.
“Centre Square is a major part of Philadelphia’s fabric and attracted investor interest and capital commitments from around the globe. The asset sits across from Dilworth Park and City Hall and above the mass transit network. It is the best-located set of office towers in the Philadelphia CBD. We are honored to have been chosen to represent Equity Commonwealth in the sale of this landmark asset.”
Located at 1500 Market Street, in the heart of Philadelphia’s dynamic Central Business District, the office complex is an iconic part of the Philadelphia skyline. Built in 1974, the complex consists of a 36-story East Tower and a 43-story West Tower, which houses market leading tenants including the University of Pennsylvania Health System, Towers Watson, PHMC, Saul Ewing, Dilworth Paxson and the mortgage insurer, Radian.
In addition to a parking garage that can accommodate 450 vehicles, Centre Square also includes a 41,000 square-foot retail component with several shops, stores and restaurants. In 2015, the complex was awarded an Energy Star Label and the BOMA 360 Designation.
Nightingale Properties—which owns multiple properties throughout Philadelphia and the U.S., including 1635 Market Street, 1500 Spring Garden Street and 1835 Market Street—has plans to do an extensive renovation at Centre Square.
www.omegare.com
Tuesday, July 25, 2017
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