SACRAMENTO, Calif. - The California Public Employees' Retirement System, Sacramento, and Hines, through their National Office Partners L.P., purchased Riverfront Office Park in Cambridge, Mass., from a partnership of the Blackstone Group. Terms of the deal were not disclosed.
The acquisition is the joint venture's 10th since July 1998, when it was created by the $177 billion CalPERS and Hines. Riverfront is a 665,500-square-foot Class A office complex; it is 100% leased to tenants such as Lucent Technologies and Razorfish.
Duke-Weeks in partnership in industrial properties deal
INDIANAPOLIS - Duke-Weeks Realty and affiliates of J.P. Morgan Investment Management and General Motors Asset Management formed a partnership to complete a $789 million industrial properties joint venture; the deal includes 129 buildings totaling 21.8 million square feet in seven markets, as well as more than 300 acres of undeveloped land. Duke-Weeks sold or contributed $469 million in industrial properties and $30 million in undeveloped land, and J.P. Morgan contributed $43 million in industrial properties.
Duke-Weeks has 50% of the deal. J.P. Morgan's 25% interest was made on behalf of clients in its value-added commingled fund. GMIM holds the remaining 25% stake. Duke-Weeks will provide property management, leasing, development and construction services.
N.Y. State Common Fund buys into Seattle office building
ALBANY, N.Y. - The New York State Common Retirement Fund, Albany, acquired a 49.9% interest in the Bank of America Tower, Seattle, an existing asset of Equity Office Properties and the first asset of the Common Fund/EOP office joint venture; the fund committed $315 million in equity. The $127 billion Common Fund also acquired a Class A warehouse/distribution property in Ontario, Calif., for $27.6 million under its joint venture with ProLogis.
The fund also provided $82.5 million of a $165 million mortgage loan secured by One State Street Plaza, a Class A office building in New York. The $80 billion New York State Teachers' Retirement System provided the remainder of the loan.
Lowe-TIAA joint venture begins work on first project
WASHINGTON - Lowe Commercial Development, a joint venture between Lowe Enterprises and the Teachers Insurance and Annuity Association, began construction of its first project, a $65 million, nine-story, 260,000-square-foot office building at 601 New Jersey Ave., Washington. Wafra Investment Advisory Group is contributing additional equity funding on behalf of an institutional client that prefers to remain anonymous, and Wachovia Bank is providing debt financing.
Lend Lease Global, SSB buy Korean loan portfolio
NEW YORK - Lend Lease Global Properties, SICAF, an affiliate of Lend Lease Real Estate Investments Inc., has agreed to jointly acquire with Salomon Smith Barney a major non-performing loan portfolio from the Korea Exchange Bank. The bulk of the $436 million loan portfolio is being secured against real estate assets in Seoul, Pusan, Inchon and other metropolitan areas in Korea. A bank spokesman said that this is its first major sale of non-performing loans.
CB Richard Ellis to coordinate Kodak Elmgrove campaign
ROCHESTER, N.Y. - CB Richard Ellis Services has been appointed to coordinate an international marketing campaign to lease 4 million square feet of office, research and development, biomedical, warehouse/distribution and manufacturing space at the former Kodak Elmgrove campus in Rochester, N.Y. Eastman Kodak recently sold the campus to Continental Industrial Capital. Mark Pasquella, managing director CB Richard Ellis, said the space, renamed Rochester Technology Park has particular appeal for technology companies because of the city's diverse economy, skilled labor force and low cost of living.
Hires help J.P. Morgan expand its non-U.S. client services
NEW YORK - J.P. Morgan Investment Management, Inc., has hired Steven J. Mastrovich and Michael O'Brien in a move to expand its real estate group to serve non-U.S. clients in addition to its U.S. clientele. Mr. Mastrovich, who will be a vice president and head of structured real estate investments for non-U.S. and high net-worth clients in high-yield U.S. opportunities, was previously managing director and head of specialized investments for HSBC Investment Banking and Markets. Mr. O'Brien, who has been named vice president and head of client services for the eastern region, previously served as senior account executive, product manager and financial analyst at Lend Lease, where a spokeswoman said he has not yet been replaced.