The Deal Sheet
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Dallas' FelCor Lodging Trust inked a deal with Morgans Hotel Group Co to buy two midtown Manhattan hotels—The Royalton and Morgans—for $140M. (Sounds like the pillow mints are wrapped in $20 bills.) The purchase is expected to close by 3Q'11.
MHGC will continue to manage the properties (which have a total of282 guest rooms) under a long-term management agreement. So why buy them? Felcor folks tell us they see more opportunities to increase the value by adding guest rooms and making other improvements along with the high barrier-to-entry protection of the Manhattan submarkets. Also, the purchase price of $496k per key is about 60% of the replacement cost (roughly 10 times peak hotel EBITDA). The Royalton on West 44th Street, between Fifth and Sixth avenues, underwent a $20.2M renovation in 2007 and features a Philippe Starck design with 168 guest rooms. In 2010, another lobby bar was added for $1.5M. Morgans is a boutique hotel on Madison Ave, between 37th and 38th streets. The 19-story hotel has 114 guest rooms and underwent a $10.3M renovation in 2008.
Frost Bank purchased a 5,000 SF bank branch at 11701 Plano Rd in Dallas from Wells Fargo. Fischer & Co's Chris Landers and Jim Landsaw repped the buyer. Sandia Properties' Lem Miller repped the seller.
Sabra Health Care REIT purchased the Texas Regional Medical Center of Sunnyvale, a 70-bed acute care hospital for $62.7M. The facility opened in September 2009 and is leased pursuant to a long-term, triple net lease to Texas Regional Medical Center, a partnership which includes 75 physicians who practice at the hospital.
The Retail Connection, Lincoln Property Co Commercial, and the Fidelity Real Estate Group acquired the 380k SF Village on the Parkway lifestyle center at Beltline Road and the Dallas North Tollway in Addison for an undisclosed amount. The center was sold by J.E. Robert Co after a default by its previous owner. The Fidelity Real Estate Group made the investment on behalf of an institutional value-added real estate fund.
Metroplex Movers purchased a 20k SF warehouse at 10820 Composite Dr in Dallas from Steve Clark Dallas. Bradford Commercial Real Estate Services broker associate Joe Santaulariarepresented the buyer. Mike Smith Co represented the seller.
HFF closed the sale of Bluffview Towers, a two-building 196k SFClass-A office complex in Dallas. HFF marketed the property for the seller, Capstar Real Estate Advisors along with an institutional partner. CDI purchased Bluffview Towers for an undisclosed amount. Bluffview Towers is at 3860 and 3890 Northwest Hwy. The property's East Tower has 126k SF in seven stories and the West Tower totals70k SF in four stories. Renovated in 2009, the property is 96%leased.
Land on Development Co acquired 506 acres just north of the Sam Rayburn Tollway (SH 121) between Coit and Independence roads inFrisco. Land on Development founder/prez John Landon plans todevelop the property into a master-planned community of about 1,600 residential home sites. The property was purchased from H. Roger Lawler, who has owned the tract since the 1960s. Broker for the transaction was Mike Neitzel of Neitzel Real Estate Co. The purchase price was undisclosed. Landon Homes will be one of several featured builders offering homes with projected prices from the $300k to $700k. Development could begin as early as this summer with model homes open for sales by Q1 '12. John says this property represents the largest single tract of undeveloped land in Frisco.
Now Specialties added 10k SF of warehouse space and renewed35k SF of flex office space in Country Club Place at 2122 Country Club Dr in Carrollton. Bradford VP Brian Pafford negotiated the direct deal for the landlord, Acquiport DFW. Bradford broker associate Joe Santaularia repped MOL Logistics USA in its renewed almost 12k of flex industrial space in Port America Place II at 750 Port America Place in Grapevine. Lincoln Property Co's Gil Stroube represented the landlord, AMB US Logistics Fund.
Stream Realty Partners' Kyle Jacobs and John Pope reppedComRent International in a more than 19k SF 10-year lease at 1625 Crescent Cir in Carrollton. JSC Realty's Alan Clark represented the landlord.
Bob Stallings Auto Group inked a 16k SF office-warehouse lease for its group corporate HQ and automobile showroom at 3222 Skylane Dr in the Skylane Warehouse Distribution property inCarrollton from landlord Cobalt Industrial REIT II. Henry S. Miller Brokerage EVP Dan Spika repped the tenant. Holt Lunsford Commercial's Jim Brice repped Skylane Warehouse Distribution and Cobalt Industrial REIT II.
Zorro?s Texas Buffett inked a 15k SF deal in Melbourne Plaza at the SWC of Melbourne Road and Cheryl Avenue in Hurst. The Retail Connection?s Mitch Traub and Scott Rose repped the landlord, Grace Development.
|PEOPLE ON THE MOVE|
Trammell Crow Co has named Danny Queenan as the new CEO. (He joined TCC in March 2010 as prez of central operations.) Danny will be in charge of working with business units, TCC?s funds team and on new acquisitions and developments. He tells our Chicago reporter Maureen Wilkey that the focus and structure of the company won't change as he takes over from Bob Sulentic, who will maintain his role as prez at CBRE, TCC's parent company. TCC is coming off a solid 2010 as it sold Energy Center I and completed Energy Center II in Houston?s Energy Corridor and completed Two Energy Center, Danny says. It also finished construction on the Hess Tower in downtown Houston and is about to announce projects in California and DC. Danny will split his time between Chicago and TCC's HQ in Dallas.
Cindy Burger joined Grubb & Ellis as SVP, director of management services. She will lead the property management team in Dallas, as well as oversee and expand the company's management services business throughout the region. She came to Grubb from CBRE, where she was responsible for the leasing, marketing and property management of more than 50M SF of office, industrial, and retail space. Before joining CBRE in 2008, she spent three years with Cushman & Wakefield's Irvine office, rising to the position of director.
KeyBank Real Estate Capital is expanding its seniors housing agency lending group with two new hires in its originations and underwriting functions. The new group will increase Key's originations and underwriting capabilities for Freddie Mac, Fannie Mae and Federal Housing Authority (FHA) financing for seniors housing. In Dallas, Monique Bimler will serve as VP and permanent product specialist and Morgin Sherwood will be assistant VP and senior financial analyst.
Tannery & Co Wealth Management's financial advisor Michael Tannery was recognized as a top financial advisor and named to theLPL Financial Director?s Club. This distinction is based on an annual production ranking of all registered advisors supported by LPL Financial (the nation's largest independent broker-dealer) and is awarded to less than 20% of the firm's more than 12,000 advisors nationwide.
Cinemark Holdings plans to build a 14-screen, all-digital movie theatre featuring the company's new Cinemark NextGen design concept. Cinemark has entered into an agreement to purchase 10 acres in Presidio Junction, a 300-acre, master-planned, mixed-use development of LNR Property about eight miles north of downtownFort Worth at the intersections of I-35W, SH 287, and North Tarrant Parkway. Targeted opening is summer 2012. The new Cinemark XD Extreme Digital Cinema auditorium will be the fourth in the Dallas area. Negotiations were handled by Marc Marrocco, Brian Glaser, and Herb Weitzman with The Weitzman Group and Jay Jostrand of Graco.