Other News in Brief: Silverstein, CalSTRS Close on $400M Deal For 575 Lex; 1.5M-SF Mixed-Use...

Silverstein, CalSTRS Close on $400M Deal For 575 Lex

Silverstein Properties and its joint venture partner, the California State Teachers' Retirement System, have closed on a deal to acquire 575 Lexington Avenue in Manhattan. The partnership will pay $400 million for the 35-story, 600,000-square-foot tower (pictured). The acquisition marks the first purchase for the new JV, which plans to invest up to $2 billion in Manhattan real estate. The venture was advised in the purchase of 575 Lexington by CB Richard Ellis Investors. The seller was Koeppel Cos. Major tenants in the building include Cornell University, New York Sports Club and Staples.

1.5M-SF Mixed-Use Opens in San Francisco

The 1.5 million-square-foot San Francisco Centre retail/office project has opened in downtown San Francisco. Jointly developed and owned by Forest City Enterprises Inc. and Westfield America, the complex is one of the largest urban retail centers west of the Mississippi. San Francisco Centre is anchored by Bloomingdale's West Coast flagship store, measuring 338,000 square feet. The retail portion of the project--which also includes a 350,000-square-foot Nordstrom's and 326,000 square feet of other specialty retail--opened at more than 90 percent leased.

AFR Sells 131,000-SF California Office Complex

American Financial Realty Trust has sold the Ellinwood Office Complex, a 131,000-square-foot, three-building mid-rise office complex in Pleasant Hill, Calif. The property, which was previously occupied by Bank of America, was purchased by investors and affiliates of DJM Acquisitions Group L.L.C. for an undisclosed sum. The new owners plan to renovate and remarket the property for lease to multiple tenants. Ed Del Beccaro, Kevin Van Voorhis, Andy Zighelboim and Scott Kinsey of Colliers International represented both the buyer and seller in the deal.

NYC Construction to Top $20B in 2006, According to Report

Total construction spending in New York City will top $20 billion for the first time in 2006, according to a report prepared for the New York Building Congress. The sixth annual New York City Construction Outlook reported that total construction spending in the city will reach $20.8 billion this year, an 11 percent increase from 2005, when spending reached a then-record total of $18.8 billion (non-inflation adjusted). The report, which is based on an analysis of capital budgets, private sector development plans and other indicators, expected that spending would top exceed $21 billion in 2007 and 2008.

Akridge Closes on Air Rights to $1B Union Station Development

Akridge has closed on the development air rights for the Burnham Place at Union Station project, a $1 billion mixed-use development directly connected to the Washington, D.C., train station, the largest in the world. The 3 million-square-foot project with be built on a concrete platform twenty feet above the rail yard. Akridge purchased the 15-acre air rights from the federal government's General Services Administration.

New Jersey Retail Center Sells for $64.3M

ITC Crossing South Shopping Center, a nine-building, 366,000-square-foot shopping power center located in Mount Olive, N.J., was purchased by Los Angeles-based SCI Real Estate Investments, a TIC buyer. The 47-acre complex is currently 100 percent leased to tenants including Lowes, TJ Maxx and PetsMart. SCI was represented in the negotiations by Richard Walter and Donald MacLellan of Faris Lee Investments. The seller, AIG Baker, represented itself.

$42M Deal for Florida Office, Adjacent Development Site

An affiliate of Ram Development Co. has acquired Palmetto Park, a 66,966-square-foot office building in Boca Raton, Fla. The company also purchased a two-phase, 3.78-acre mixed-use development site as part of the $42 million deal. The seller, a partnership between WestCity Partners and Fidelity Real Estate Group, was represented by Holliday Fenoglio Fowler L.P. The Class A Palmetto Park is 100 percent leased with Merrill Lynch as the largest tenant. The development site is fully approved for 276 residential units, 17,160 square feet of retail and an 821-space parking garage.

Hersha Acquires Virginia Hotel in $35M Deal

Hersha Hospitality Trust, a hotel REIT, has purchased the 203-room Courtyard by Marriot in Alexandria, Va. for $35 million. The hotel is located near Washington, D.C., and Reagan National Airport. Hersha financed the acquisition with a combination of cash and $25 in fixed rate first mortgage financing.