Global Viewpoints

Healthcare Trust of America, Inc. Pays $107M for 641,000-SF Medical Office Portfolio Located in Phoenix

Edited: Jennifer Brenner
Source: Healthcare Trust of America

Healthcare Trust of America, Inc., ("HTA"), a self-managed non-traded, real estate investment trust, announced the completed acquisition of a 17 property, 641,000 SF medical office portfolio located in Sun City and Sun City West, Arizona for approximately $107,000,000.

The medical office portfolio is currently 92% leased and is located in the retirement communities of Sun City and Sun City West in the northwest Phoenix metropolitan area. These properties were developed in connection with the Banner Boswell and Banner Del E. Webb hospitals. These hospitals support over 800 licensed acute care beds. Approximately 95% of the portfolio is located on the hospital campuses and approximately 28% of the portfolio is leased by Banner Health and its affiliates.

"These assets provide stability and growth potential. This transaction represents another key step in our acquisition of large, high-quality medical office portfolios associated with high-quality healthcare providers. We were able to secure this unique opportunity because of our strong balance sheet, and the willingness of the parties to structure a transaction which made sense based on the marketplace today," said Scott D. Peters, CEO and president of HTA. "We look forward to working with these hospitals and the excellent healthcare providers in this market."

During the fourth quarter of 2009, HTA has acquired approximately $253 million in assets. These assets include a total of 25 individual properties and one real estate-related asset, representing approximately 1.2 million square feet.

Since January 2009, HTA has acquired approximately $494 million in assets. These assets include a total of 50 individual properties and one real estate-related asset, representing approximately 2.3 million square feet.

Mack-Cali Announces Lease Extensions Totaling Over 124,000 Square Feet With Three Interpublic Group Subsidiaries

Edited: Jennifer Brenner
Source: Mack-Cali Realty Corp.

Mack-Cali Realty Corporation has signed lease renewals with three Interpublic Group subsidiary companies at Mack-Cali's properties in Parsippany, New Jersey. The leases with Integrated Communications Corp., Pace LLC, and Torre Lazur Healthcare Group, Inc. - now totaling 124,679 square feet - all have been extended until 2022.

The transactions consist of the following:

• Integrated Communications signed a 43,101-square-foot lease renewal at 5 Sylvan Way in Mack-Cali Business Campus.
  
• Pace LLC signed a lease renewal for 19,633 square feet at 35 Waterview Boulevard in Waterview Corporate Center.
  
• Torre Lazur Healthcare Group, Inc. signed a lease renewal for 61,945 square feet at 20 Waterview Boulevard, also in Waterview Corporate Center.

These Interpublic Group companies were represented by Scott Panzer and Robert Romano of Jones Lang LaSalle, and Mack-Cali was represented in-house by Diane Chayes, vice president of leasing.

Mitchell E. Hersh, president and chief executive officer of Mack-Cali, commented, "The Interpublic Group is one of the world's leading marketing and communications organizations, and we're delighted that several of its companies have chosen to renew within our portfolio. These transactions demonstrate Mack-Cali's ability to build long-term relationships with strong, global tenants."

News From the Road: GSU Graduates Face Tough Real Estate Market

Written By: Bruce A. Kellogg, MAI, FRICS

Having been invited to attend the Georgia State University graduation ceremony to support three young friends was an honor and delight. It had been several years since experiencing a venue of this kind, and the festivities at the Georgia Dome in Atlanta were uplifting. The commencement address by the former Coca-Cola President and Honorary GSU Ph.D., Neville Isdell, was direct and relevant to those entering the workforce today. To paraphrase, these graduates are facing the most difficult challenge (perhaps) in our history, but the opportunities abound for those who are prepared and determined to succeed.

I commend the many professors who taught these students, in particular my friends, Drs. Julian Diaz and Karen Gibler, because they had the added burden of preparing them for the worst marketplace possible. It’s important to also acknowledge that these students were exposed to ARGUS Software training at GSU, which we know will assist them in achieving their professional goals. In spite of these benefits, all three understand the challenges and are facing them head on. Each has a special story to tell about the journey to this event. It is my pleasure to provide a brief summary into the background of these young women.

The first, Jewelle Kennedy, is a born leader and understands fully the importance of developing relationships and going global. She was the co-founder and VP of the GSU Real Estate Club, a team member for GSU’s involvement in the Global Diversity Summit Development Case Competition in July 2007, and studied abroad in 2008 by traveling to Egypt and Dubai, UAE. More recently, Jewelle has stepped up to assist in an organization being created to support those who have lost their jobs in the real estate industry. With a deep awareness of the current market facing her, she is looking to further her education with a masters degree in real estate development, so she can one day own, develop, acquire and manage commercial real estate.

Another graduate is Mahsa Allandet, who moved to the U.S. five years ago to pursue her education. Born in Iran and moving to France at the age of three, Mahsa’s relocation to Atlanta was indeed bold. She abandoned the comfort of her life in France to journey into a new world devoid of friends and familiar surroundings. As she indicates, she has finally found her place professionally and personally. As a CREW Network scholarship winner in 2008, Mahsa was recognized for her courage, intelligence and goals that few can replicate.

The third graduate is Danielle Stewart. Slightly older than the others, she has traveled a difficult road to achieve her goals. Challenges for her started close to birth and continued for years to come. However, these became learning experiences rather than excuses for failure. Her superior academic achievements and athletic accomplishments, part-time work and other responsibilities developed her into someone who seized opportunities. Following her initial college experience in Colorado, a move to Atlanta in 2002 to continue her studies at GSU, and the meeting of her husband, Danielle encountered some delays in her plans to graduate with the birth of her son, Charles, in 2004, and congestive heart failure that resulted in a heart transplant in 2007. However, as extreme as these challenges may be for most people, she was able to focus more on school than ever upon her successful recovery. Danielle sees herself as a happy mother and wife and, we might add, a new graduate with a BBA in real estate from an excellent undergraduate program.

Congratulations to three talented and accomplished real estate graduates and soon-to-be professionals. They are representative of thousands of young men and women who have graduated college in 2009 facing the challenges of the current marketplace. I am confident that they will achieve success and prosper based on their intelligence, perseverance and personalities. I was honored to have been invited to attend the graduation ceremony as their guest, and I am proud to know them!

Federal Capital Partners Completes $320 Million Acquisition of American Community Properties Trust

Edited: Jennifer Brenner
Source: Federal Capital Partners

Federal Capital Partners (FCP) today announced the closing on December 30, 2009 of its acquisition of American Community Properties Trust (NYSE APO), referred to as ACPT. The acquisition was effected through a cash merger between FCP Fund I, L.P. and ACPT in which ACPT Shareholders received total consideration of $43.6 million. The purchase of ACPT includes real estate holdings with an approximate book value of $320 million.

Since 1968, ACPT and its predecessor have been the developer of St. Charles, a 9,100 acre planned community in Charles County, Maryland, just 11 miles south of the D.C. Capital Beltway and 23 miles from the White House. ACPT is a real estate development and operating company that owns 3,200 apartments and 230,000 square feet of commercial property, as well as 4,000 acres of land entitled for 2,500 apartments, 8,500 homes and 5 million square feet of commercial development. Approximately half complete, St. Charles is home to 40,000 residents and over 4 million square feet of commercial property. Headquartered in St. Charles, ACPT has over 100 employees across its operations, all of whom are expected to remain with the company.

"This is a rare opportunity to buy a well-managed company with strong, stable cash flow and the Washington, D.C. area's largest inventory of fully entitled, reasonably priced, well located home sites," said FCP partner, Lacy Rice. In 2008 and 2009, homebuyers and renters recognized St. Charles, which is as close to Washington as similar planned communities like Reston and Columbia, as one of the Washington area's best values in residential communities. Lennar, NVR and Richmond American are currently building new homes at St. Charles starting from the low $200's.

Taking ACPT private will allow the Company to reduce operating costs, improve financial flexibility and accelerate growth. Steve Griessel, Chief Executive Officer of ACPT, said, "FCP gives us the resources to heighten awareness about St. Charles' highly-ranked public schools, the attributes of a greener lifestyle, our broad array of recreational amenities, and a remarkably affordable high-quality lifestyle -- all within 11 miles of the Beltway."

In December 2009, ACPT unveiled a plan to make St. Charles an international model for green communities. The ambitious plan includes dedicating the remaining 4,000 acres, which encompasses 11,000 housing units and five million square feet of commercial space, for development into a model green city according to high environmental standards, minimizing the carbon footprint of future homes and businesses. It also includes an aggressive marketing effort to incentivize and promote the retrofitting of existing homes and businesses to make them more energy efficient. Extending rapid transit into northern Charles County is part of ACPT's long-term plan to promote the energy efficient lifestyle and reduce congestion on Routes 301, 5 and 210 south of the D.C. Capital Beltway.

"As FCP takes ownership, we intend to raise the profile of St. Charles and the many benefits and amenities of this outstanding planned community among potential homebuyers and apartment residents in the metro Washington market," said FCP Managing Director, Alan Shearer. Mr. Shearer continued, "Affordability, quality, safety and energy efficiency are key lifestyle issues for people deciding on where they will live, work, play and send their children to school."

FBR Capital Markets & Co. acted as financial advisor to the special committee of ACPT's board of trustees.

ARGUS Software to Work with OSCRE to Create New Global Real Estate Data Standards

Edited: Jennifer Brenner
Source: ARGUS Software

ARGUS Software today announced that the firm will work closely with OSCRE (Open Standards Consortium for Real Estate) members and partners to produce new global real estate data exchange standards. As a part of this cooperative initiative, ARGUS Software plans to donate the intellectual property rights to the ReXML standard for use by OSCRE.

This contribution will, through OSCRE’s consensus-based open real estate standards framework, allow harmonization with and broader acceptance and adoption of related consortium standardization activities.

ARGUS Software is an executive member of OSCRE and this project is the first initiative of its kind since OSCRE Americas and PISCES Ltd. merged in November 2009 to become an international, not-for-profit consortium committed to working with real estate stakeholders in leading the development and delivery of interoperable standards for the real estate industry globally.

“Our commitment to the creation of data standards that can increase the efficiency, consistency and transparency of data standards across the globe runs deep,” said Mark P. Kingston, president and CEO of ARGUS Software. “We have been working collaboratively with many industry associations for years and consider this a critical part of the path ahead. Once completed, the effects of consistent data standards that can be used worldwide will absolutely change the way this industry does business.”

Catherine Williams, chief executive for the newly merged OSCRE commented: “The creation of global data standards for commercial real estate can only create the desired efficiencies within the market, if they are adopted by the leading solutions providers within the industry. We are delighted to have ARGUS Software’s support and donation of the ReXML data standard will have a substantive impact on the progress of our standards initiative.

Colliers International and FirstService Real Estate Advisors Combine to Create World's Third Largest Commercial Real Estate Services Firm

Edited: Jennifer Brenner
Source: Colliers International

Colliers International and FirstService Real Estate Advisors ("FirstService REA") recently announced that they will combine their operations and global real estate services platforms. The combined entity will assume FirstService REA's industry-unique operating and partnership model and operate as Colliers International in 61 countries around the world. FirstService REA is an autonomous subsidiary of publicly traded FirstService Corporation.

With this announced combination, Colliers International is now ranked as the global commercial real estate industry's third largest real estate services firm. As it completes the transition from a decentralized network of affiliates to a more centrally owned and operated firm, FirstService REA will work with its operating partners to provide greater stability and consistency in its operations and enhanced client service delivery throughout the Colliers International organization.

"Colliers International has many distinct competitive advantages when compared to other global service providers," said Douglas P. Frye, Chairman and CEO of Colliers International. "Our successful partnership model enables key executives to retain significant equity in the businesses they operate day-to-day creating more alignment and accountability; ensuring clients receive the highest level of service and consistent delivery over the long-term."

FirstService REA embarked on one of the most aggressive global expansions in the history of commercial real estate, largely executed during a time when competitors were scaling back due to the global economic recession. Expansion began in 2004, when parent company FirstService invested in FirstService REA, the largest member of Colliers International. First Service REA subsequently acquired controlling stakes in several North American-based commercial real estate service specialties including FirstService PGP Property Valuation, PKF Hotel and Hospitality Consulting, MHPM Project Leaders and FirstService Williams, FirstService REA's New York Tri-State area brokerage hub.

Concurrently, FirstService REA expanded globally acquiring significant equity interests in Colliers International operations in the United Kingdom, Ireland, Spain, Russia and several other countries in Western and Eastern Europe and Asia Pacific.

FirstService REA also launched Corporate Solutions and Institutional Asset and Property Management divisions, both tactical infrastructure enhancements that integrated essential service offerings in the United States and aligned with those of Colliers International offices globally. Currently, Corporate Solutions and Institutional Asset and Property Management operations are located in key markets throughout the U.S.

The fully integrated Colliers International business employs more than 15,000 people in 480 offices in 61 countries, and generates in excess of $1.9 billion in revenues annually.

"The strategic integration of our business and service brands not only facilitates maximum service levels to our clients, but it also helps us attract the best and brightest in the industry -- those who are entrepreneurial and client centric by nature and who seek opportunities that match their industry aspirations," said Dylan Taylor, president and CEO of FirstService REA who will become president and CEO of Colliers International in the USA.

"Colliers International has emerged as the third largest global leader in commercial real estate services," Frye said. "This is a milestone in our company's history and another step forward in providing our clients with a broad range of highly specialized real estate services delivered seamlessly throughout the United States and 61 countries globally. With the transition to the Colliers International brand, as one centrally owned and operated entity together with local partners owning significant equity in their own operations, the industry has fundamentally shifted to an entirely new level of service excellence," concluded Frye.