See GRAPEVINE on Back Page

THE GRAPEVINE

Two former Advance Realty staffers have opened their own commercial real estate shop in the New York area. Christopher Bellapianta and Dave Surti are managing principals at Camber Capital of Clifton, N.J., which they launched two weeks ago. The firm will raise money on a one-off basis, focusing on purchases of up to $40 million. Bellapianta was a managing director and principal at Advance, a development firm in Bridgewater, N.J. He had prior stints at Madison Capital and FrontView Advisors. Surti was a director of finance and acquisitions at Advance. He previously was at SSI Health, AREA Property and NorthMarq Capital.

After 10 years at Ashkenazy Acquisitions, Brett Moscowitz left this month to join Brixmor Property. Moscowitz was most recently a vice president of asset management at

2 Underleased Dallas Offices Listed

2 Pension Shows Atlanta Office Building

2 Northern Va. Office Complex for Sale

2 Value-Added Rental Play in Virginia

4 Lenders Seek Exit From Va. Offices

6 Suburban Phila. Offices Available

9 Mixed-Use Site for Sale in Jersey City

10 Pa. Grocery-Anchored Center on Block

11 Parcel Available on NY’s East Side

6 NEW DEALS

9 ON THE MARKET

11 MARKET SPOTLIGHT

4th-Quarter Office Sales Heading for a DipOffice sales are expected to end the year with more of a fizzle than a bang, the

upshot of a year marked by hesitation among buyers and sellers alike.The pipeline of large listings is relatively thin, and some market pros are expect-

ing a 10-20% drop in fourth-quarter sales compared with the same period last year. That would make 2016 the first down year for office sales since the recovery.

“I think volume could be down significantly in the fourth quarter, due to the reduction in the larger transactions, including the mega-deals” said Brian McAuliffe, president of institutional properties at CBRE.

In the years following the market downturn, the fourth quarter typically saw a surge of activity as buyers and sellers pushed to complete deals by yearend. From 2010 through 2014, the last three months produced 33-47% of annual sales. But that changed last year, when the fourth quarter was the second-busiest, after the April-June

See DIP on Page 8

New Lease in Place, SF Tower Hits the BlockCIM Group is putting a San Francisco office building on the market after signing

the sole tenant to a new lease.The 420,000-square-foot building, at 211 Main Street, is 97% occupied by Charles

Schwab as its headquarters. The investment bank signed a multi-year renewal on Friday, clearing the way for CIM to proceed with its plan to market the property, called Charles Schwab Plaza, via HFF.

Bids are expected to come in around $400 million, or $952/sf. The 17-story building is in the South Financial District, two blocks from the Embarcadero along San Francisco Bay. It was developed in 1973.

The lease renewal ended recent uncertainty about the building’s status. Charles Schwab had considered moving out upon expiration of its lease in May 2018. CIM appeared to be pursuing a multi-track strategy: negotiating for the renewal while also inviting leasing brokers from CBRE to conduct property tours for potential replacement tenants. If Charles Schwab had chosen to vacate, the building likely

See TOWER on Page 8

Pledges by Pensions Fell Again in 3rd QuarterU.S. public pensions continued to reduce equity pledges to high-yield real estate

vehicles in the third quarter.Pensions committed $9.5 billion to commingled real estate funds and separate

accounts, down 29% from $13.3 billion a year earlier, according to FPL Consulting of Chicago. Through the first nine months of the year, pledges fell 20% to $30.5 billion, from $37.9 billion in the year-earlier period.

“This third-quarter number really confirms to me that this is a sustained pull-back from investors,” said Erin Green, a director at FPL. “We’re at a point where there’s some concern over whether the market is overheated. That’s leading to natu-ral cautiousness.”

Last year, commitments reached a record $46.1 billion, capping three straight years of growth. But pensions made those investments despite growing apprehen-sion about commercial real estate, according to one measure. Cornell University’s

See PENSIONS on Page 5

OCTOBER 26, 2016

Underleased Dallas Offices ListedBuilding and Land Technology is showing an office building

in Dallas’ strong Uptown neighborhood that could fetch $110 million from core-plus investors.

The 376,000-square-foot Parkside Tower is 75% leased, and the marketing campaign is emphasizing the opportunity to boost revenue by filling the vacant space. The estimated value works out to $293/sf. The Stamford, Conn., owner has given the listing to Eastdil Secured.

Although the Class-A property dates to 1985, Building and Land has pumped $10 million into renovations over the past 12 months. The improvements include modernized elevators, an upgraded heating and air conditioning system, a fitness center, a tenant lounge, a cafe and new landscaping. Many of the ten-ants are law and financial-services firms.

The 18-story building, at 3500 Maple Avenue, is in Dallas’ premier submarket, Uptown/Turtle Creek. The area is posi-tioned as a “live-work-play” neighborhood, with pedestrian-friendly streets and trendy shops and restaurants.

The submarket’s 9.1 million sf of Class-A space was 86.7% leased at the end of the third quarter, according to CBRE. The average Class-A asking rent was $44.16/sf, the highest by far in the Dallas area. Valuations have been rising: Two office deals in the submarket topped $500/sf this year, the first in the city’s history to do so.

Pension Shows Atlanta Office BuildingOhio State Teachers is pitching an office building in an area

of Atlanta that is benefiting from the construction of a profes-sional baseball stadium.

The 18-story property, Galleria 100, encompasses 414,000 square feet at 100 Galleria Parkway Southeast. It is expected to attract bids of $80 million, or $193/sf. Eastdil Secured has the listing.

The Class-A building is 90% occupied, with a weighted aver-age remaining lease term of 3.8 years. No tenant accounts for more than 13% of the space.

Eastdil has told prospective buyers that they could boost returns by filling vacant space and raising rents as they expire. In-place rents are 10% below market levels.

Galleria 100 is part of Galleria Office Park, a master-planned development spanning 86 acres. It is less than two miles from a $1.1 billion stadium that will be home to the Atlanta Braves starting next year.

The marketing campaign touts a recent transformation of the surrounding Cumberland/Galleria submarket from a sub-urban office area to a mixed-use neighborhood that is friend-lier to pedestrians. That redevelopment wave began in 2013, driven in part by the ballpark’s construction. A projected $4 billion will have been spent by yearend 2018, according to sales documents.

The developments have included 1.8 million sf of office space, which is 88% occupied, along with 6,800 residential units, 1,400 hotel rooms and 625,000 sf of retail space.

Northern Va. Office Complex for SaleGrosvenor Americas is shopping a Class-A office complex in

Northern Virginia that benefits from its proximity to a Metro-rail stop.

The 254,000-square-foot Campus at Sunrise, in Reston, is expected to draw bids of up to $70 million, or $276/sf. That would produce an initial annual yield just topping 7%. San Francisco-based Grosvenor has given the listing to Cushman & Wakefield.

The marketing campaign emphasizes that the property is a half-mile from the Wiehle-Reston East station on Metrorail’s Silver Line, which opened two years ago. That has helped keep the occupancy rate above 90%, better than the 85% average for the Reston submarket. Buildings directly adjacent to the sta-tion are fully leased.

But one tenant at Campus at Sunrise is moving out, which will lower the occupancy rate to 87% by the time the property trades. The pitch is that a buyer could fill the vacant space at higher rents and lift rents on other below-market leases as they expire on a staggered schedule. There are about two dozen tenants, includ-ing BridgeStreet Corporate Housing, Drohan Management, Mason International and ThreatTrack Security.

The three-building complex, at 11130-11190 Sunrise Val-ley Drive just off the Dulles Toll Road, was developed between 1987 and 1990 for a single user and later repositioned for mul-tiple tenants. Since 2008, some $13 million has been spent on renovations, including upgrades to the roof, ventilation sys-tems and common areas. Amenities include internet access in the common areas, a cafe, balconies and outdoor spaces sur-rounding a pond.

Grosvenor acquired the complex in 2011 for $63 million from BPG Properties, which now operates as Equus Capital of Yardley, Pa.

Value-Added Rental Play in VirginiaAn investment firm is marketing a suburban Virginia apart-

ment complex to value-added investors.The 360-unit complex, at 5901 Coverdale Way in Alexan-

dria, is 97% occupied. Bids are expected to weigh in at about $95 million, or $264,000/ unit. CBRE is representing the seller, Waterton Associates of Chicago.

The garden-style apartments have 1-2 bedrooms, bamboo-style floors, granite or faux-granite countertops, sun rooms and balconies. The units are a cut below those at complexes constructed recently, and the average rent of about $1,700 is as much as $400 less. A buyer could update the flooring and appliances and seek to close that gap.

There are two pools, a fitness center, a dog park and a cyber cafe. Free shuttle service to the nearby Van Dorn Metro station is offered. The property, called Ridgeleigh at Van Dorn Metro-rail, was built in 1995.

Fundamentals remain strong in Greater Washington’s rental market. Construction has slowed, and the average occupancy rate jumped a full percentage point last year, to 95.7%, accord-ing to Marcus & Millichap.

October 26, 2016 2Real EstateALERT

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Lenders Seek Exit From Va. OfficesA group of lenders is marketing two adjacent office build-

ings in Fairfax, Va., that are 75% occupied by a Lockheed Martin subsidiary.

WillowWood Plaza 3&4, which encompass 276,000 square feet, are expected to attract bids of $40 million, or $145/sf. At that price, the buyer’s initial annual yield would be more than 10%. The seller, a lending consortium led by MassMutual unit Barings, is marketing the buildings as a package via Cushman & Wakefield.

The Lockheed unit, Zeta Associates, offers communica-tions-signal collection and processing services to the national defense and intelligence agencies. Zeta, which is the sole ten-ant, has substantially improved its highly specialized space and thus seems likely to renew its lease upon expiration in 2019.

The two buildings are at 10302 and 10304 Eaton Place in the Fairfax Center submarket, which has a 78% occupancy rate. The offering includes almost seven acres suitable for additional development.

The buildings were part of a larger portfolio that Liberty Property of Malvern, Pa., surrendered to its lenders this year.

Liberty had taken over the buildings via its 2007 buyout of Republic Property of Herndon, Va.

The four-building Willow-Wood Plaza is the largest office complex in Fairfax. It under-went $3 million of renovations in 2014, including upgrades to the exteriors. WillowWood Plaza 1&2 aren’t part of the offering.

WillowWood Plaza 3&4 are near the intersection of U.S. High-way 50 and Chain Bridge Road, about one mile south of Route 66. There are shops, restaurants and hotels in the area.

October 26, 2016 4Real EstateALERT

News > Insights > Opportunitiestheinvestor.jll.com

Parkwood Crossing Indianapolis, IN

1,200,000 s.f. Sale: $162,900,000

LIV Bel-Red Seattle, WA Multifamily sale 451 units $172,000,000

International Plaza III Dallas, TX

354,182 s.f.

*pictured

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Your company’s advertisement in Real Estate Alert will get the word out to thousands of professionals actively involved in buying, selling and managing real estate. For more information, contact Mary Romano at 201-234-3968 or mromano@hspnews.com. Or go to REAlert.com and click on “Advertise.”

Pensions ... From Page 1

Baker Program in Real Estate and advisory shop Hodes Weill & Associates of New York cal-culate an index that measures the degree of conviction that institutional investors have about real estate investments. The index, measured on a scale of 1 for the weakest conviction to 10 for the strongest, declined this year for the fourth consecu-tive year, according to a report released last week. The measure stands at 5.4, down from 5.6 in 2015 and 6.4 in 2013. The report said that “institutions are increasingly concerned about asset valuations, rising interest rates and geopolitical risks.”

Some think that the clarification of political concerns over the next several months — especially the U.S. elections and the global impact of Brexit — could boost investor confidence.

“In my view, [commitments] will be up, not down,” next year, said Alan Pardee, managing partner of New York place-ment agent Mercury Capital. There is “a continued interest in seeking return in a broad market that has very little return available.”

The highest-yielding strate-gies continue to attract the most pledges, by dollar volume. Sev-enty percent of commitments through nine months went to value-added and opportunistic strategies, slightly higher than in the year-earlier period.

One noticeable change this year is that vehicles target-ing a single property type have attracted just 17% of commit-ted dollars, down from 26% for full-year 2015 and 41% in 2014.

Among them, 54% went to multi-family vehicles, up from 40% all of last year. The rest was split among niche strategies, includ-ing senior housing, student housing, self-storage facilities and data centers (20% of pledged dollars, up from 19%); industrial vehicles (17%, down from 24%), retail vehicles (6%, down from 10%) and office plays (3.6%, down from 8%).

FPL tracks 199 public pension systems with $262 billion of real estate assets and $3.4 trillion of total assets under management. That universe is believed to represent the vast majority of real estate assets held by public pension systems. The research firm will release a report summarizing its find-ings this week.

October 26, 2016 5Real EstateALERT

Making Progress...Terra Hospitality Trust, Ltd. is the affiliate of The Shidler Group that acquires hotels for its own account and that of The Shidler Family Trust. Selectively, Terra Hospitality Trust provides up to 90% LTV financing to seasoned third-party hotel owners.

Recent Hotel Acquisitions and Financings

Please Submit Hotel Proposals of $50+ millionJeff CarswellEmail: jcarswell@shidler.comCall: (443) 975-1524

Tony TalbertEmail: ttalbert@shidler.comCall: (610) 444-3135 An affiliate of The Shidler Group

Marriott Fairfield Inn & Suites Manhattan Hilton Hampton Inn & Suites Ft. Myers Hilton Hampton Inn & Suites Nashville Hilton Hampton Inn & Suites Clermont Marriott Fairfield Inn & Suites Orlando Hilton Hampton Inn & Suites Stuart Marriott Courtyard Chicago Hilton Hampton Inn Raleigh Hilton Hampton Inn Atlanta Hilton Garden Inn Atlanta Hilton Homewood Suites Phoenix Marriott Fairfield Inn & Suites Naples Hilton Homewood Suites HoustonMarriott SpringHill Suites Naples Hilton Homewood Suites Raleigh Hilton Garden Inn San Antonio Hilton Hampton Inn Charlotte Marriott Courtyard Houston Hilton Hampton Inn Nashville

TERRA HOSPITALITY TRUST

14.1

8.8

12.0 12.6 13.3

8.2

11.8

9.1 9.5

3Q 4Q 1Q-15 2Q 3Q 4Q 1Q-16 2Q 3Q

Pension Pledges ($Bil.)

Source: FPL Consulting

Suburban Phila. Offices AvailableKeystone Property is pitching a Class-A office complex in

suburban Philadelphia as a leasing play.The 257,000-square-foot Valley Forge Office Center, in

Wayne, Pa., is expected to fetch about $250/sf, or $64 million. Keystone, a Conshohocken, Pa., fund operator, gave the listing to HFF.

There is an assumable $50.1 million mortgage, with a 5.2% coupon and a maturity date in 2021, which would reduce the buyer’s cash outlay.

The three-building complex, on East Swedesford Road, is 84% occupied, compared to an average of 86% for the King of Prussia/Wayne submarket and 92% for office buildings in the immediate area. HFF is emphasizing the potential for a buyer to boost income by closing the gap.

A buyer’s initial annual yield would be just under 7% at the estimated valuation. But the capitalization rate would rise to about 9% if occupancy and rents were in line with comparable properties.

Valley Forge Office Center has undergone nearly $18 mil-lion of renovations since 2005, including new mechanical sys-

tems and the addition of a cafe, a fitness center and an atrium connecting two of the buildings. Tenants include Affiliated Dis-tributors (28,000 sf until 2019), LaserSpine (27,000 sf until 2028), Signal Holdings (26,000 sf until 2018) and LiquidHub (24,000 sf until 2023). The weighted aver-age remaining lease term is 5.6 years.

The 19-acre property is less than three miles from the King of Prussia Mall and near a planned 122-acre mixed-use develop-ment to be built over the next five years. The development would include residences, offices, retail space and an outpatient facility for Children’s Hospital of Phila-delphia.

Keystone bought the office complex in 2005 from GE Capital for $64 million.

October 26, 2016 6Real EstateALERT

Targeting value-added opportunities across the U.S.

Long Wharf Real Estate Partners LLC is a Boston-based private

equity real estate manager focused primarily on acquiring

middle-market value-added investments with local operating

partners across property types and markets in the U.S.

LONG WHARFREAL ESTATE PARTNERS V, L.P.

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NJ ApartmentsEagle Rock Advisors paid $68

million for a 296-unit apartment property in Freehold, N.J. The New York shop bought the com-plex last month from Avalon-Bay Communities of Arlington, Va. The price was equivalent to $230,000/unit. BlueGate Partners brokered the sale for AvalonBay. The property, at 100 Lambert Way, is 95% occupied. It has 1-3 bedroom units in 20 two-story buildings. Freehold is about 45 miles south of Manhattan.

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Dip ... From Page 1

period, and accounted for only 27% of the annual total.Also, sales volume in the last quarter of 2015 fell 3% short

of the same period in 2014. And this year got off to a slow start, with a first-half sales tally of $45.5 billion, 17% below a year earlier, according to Real Estate Alert’s Deal Database, which tracks trades of $25 million and up.

Since the middle of last year, a confluence of factors has eroded investor confidence. Those include turmoil in the oil-and-gas sector, concerns about the Chinese economy, Britain’s decision to leave the European Union, the uncertain course of interest rates and the looming U.S. elections. With the overall direction of the market in doubt, buyers are uncertain about how to price buildings.

“We are hearing that ‘bidding tents’ are thinner across the board, across the quality spectrum,” said Jed Reagan, a senior analyst and head of the office research group at Green Street Advisors. “Equity investors are getting more selective.”

Yet at the same time, rents and occupancy rates have con-tinued to move upward in most major markets — making sell-ers reluctant to curb their pricing expectations. Some offerings haven’t led to transactions because bids came in lower than expected. In other cases, owners held off on listings altogether.

But there is potential for a silver lining to emerge. In the last few months, buyers and sellers appear to have started finding some common ground on valuations. “There’s a capitulation on both sides,” McAuliffe of CBRE said. That could resurrect some deals that failed to trade earlier in the year — possibly adding “several billion dollars to the fourth quarter that were previ-ously not anticipated,” he said.

Even if the year ends on a down note, market pros view it as a temporary blip, as opposed to the start of a larger downturn.

“We are starting to see investor sentiment normalize to that of the summer of 2015, before volatility spiked in the early fall and an extended period of uncertainty followed,” said Sean Coghlan, a director of investor research at JLL. “This puts the markets on solid ground heading into 2017.”

Tower ... From Page 1

would have appealed to one or more of the technology compa-nies that are gobbling up space in San Francisco.

Meanwhile, CIM had already lined up HFF to run a market-ing campaign. The estimated pricing is well more than triple the $112 million that the Los Angeles fund operator paid to acquire the building from the Booth family in 2010.

The San Francisco office market’s remarkable increases in transaction volume since the beginning of the economic recov-ery in 2010 may be slowing, but deal flow is still strong. Nine buildings with a combined value of $1.7 billion traded in the first six months of this year, according to Real Estate Alert’s Deal Database, which tracks sales of $25 million and up. That was up from $1.4 billion a year earlier (see “Market Spotlight” on Page 11).

October 26, 2016 8Real EstateALERT

NOTICE OF SECURED PARTY SALE AT PUBLIC AUCTIONNOTICE IS HEREBY GIVEN THAT RWN1H-DL 122nd Street 1 LLC, a Delaware limited liability company (the “Secured Party”), has

engaged Eastdil Secured, L.L.C. (“Eastdil”) to offer for sale at public auction the following property:

All right, title and interest of Ladera Parent LLC, a Delaware limited liability company (the “Parent” or the “Guarantor”), in and 100% of the limited liability company membership interests in Ladera, LLC, a Delaware limited liability company (the “Debtor”), together with all of the other “Collateral” as such term is defined in that certain Amended and Restated Pledge and Security Agreement dated as of August 28, 2015 made by the Parent in favor of the Secured Party (the “Pledge Agreement”) (such membership interests and such other Collateral are collectively referred to as the “Membership Interest”).

The sale will take place beginning at 10:00 a.m. on November 29, 2016 at the offices of Greenberg Traurig, LLP, 200 Park Avenue, New York, New York 10166 (the “Sale”). At the Sale, the Membership Interest will be offered as a single asset and not in parts or as separate assets. All interested prospective purchasers are invited to attend and bid at the sale.

Based upon information provided by the Debtor and the Parent and certain other persons and entities affiliated therewith, it is the understanding of the Secured Party (but without any warranty or representation by the Secured Party as to the accuracy or completeness of the following matters) that the Parent owns 100% of the membership interests in the Debtor and the Debtor owns (a) certain real property located at 300 West 122nd Street, New York, New York, a development site on the southwest corner of St. Nicholas Avenue and West 122nd Street (the “Property”) and (b) any other property owned by the Debtor, including but not limited to, any appurtenant air rights, development plans, entitlements and/or tax credits that may exist or to which the Debtor may be entitled. Information concerning the foregoing will be made available to prospective bidders (via an on line data site) who execute a confidentiality agreement to be provided by Eastdil.

The Secured Party reserves the right to accept or reject any bid and shall not be obligated to make any sale pursuant to this notice (but if any such sale is made, it will be made to the highest qualified bidder at the sale). The Secured Party reserves the right to credit bid any and all indebtedness of the Debtor and the Parent (as guarantor) to the Secured Party pursuant to the Pledge Agreement and become the purchaser at the Sale.

THE MEMBERSHIP INTEREST WILL BE SOLD PURSUANT TO APPROPRIATE TRANSFER DOCUMENTS (THE “TRANSFER DOCUMENTS”) ON AN “AS IS, WHERE IS” BASIS AND WITHOUT REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE WHATSOEVER, INCLUDING, WITHOUT LIMITATION, ANY REPRESENTATION OR WARRANTY OF MERCHANTABILITY OR FITNESS.

The Membership Interest is an unregistered security under the Securities Act of 1933, as amended (the “Securities Act”). Because of this and the fact that the Membership Interest is being sold as a block, the purchaser of the Membership Interest will be required to execute a letter representing (i) that it possesses sufficient business and investment experience to effectively evaluate the potential risks and merits of purchasing the Membership Interest; (ii) that it is an “accredited investor” (as defined in the Securities Act) and has sufficient financial ability and net worth to bear the economic risk of investment in the Membership Interest for an indefinite period of time and to withstand a total loss of purchaser’s investment in the Membership Interest; (iii) that it is purchasing the Membership Interest for investment purposes, solely for its own account and not with a view to distribution or resale thereof; and (iv) that the Membership Interest will not be resold or transferred or otherwise hypothecated by the purchaser without prior registration in accordance with the Securities Act and applicable state blue sky laws or unless an exemption from such registration under the Securities Act or applicable state blue sky laws is available. The Membership Interest will be appropriately conveyed pursuant to the Transfer Documents, which will bear an appropriate legend to the effect that the Membership Interest may not be sold or transferred without registration under the Securities Act or the availability of a valid exemption from such registration.

The following shall apply with respect to the sale herein described. The Sale will be subject to terms and conditions more particularly described in the Terms of Sale, which will be made available by Eastdil to potential bidders upon request and execution of an acceptable confidentiality agreement. In order for a prospective bidder (other than Secured Party) to attend and be deemed qualified to bid at the Sale, each such prospective bidder must (a) be physically present at the public auction; (b) register and execute in the securities letter described above; (c) deposit with the title company, no later than three (3) business days prior to the start of the public auction, the minimum deposit required under the Terms of Sale in the form of a wire transfer, money order, certified or cashier’s check as directed under the Terms of Sale. The deposit shall be returned if the person making the deposit is not the successful bidder or back up bidder in accordance with the terms of the Terms of Sale. The Secured Party reserves the right to determine the qualifications of any bidder, including the bidder’s ability to close the transaction, in its sole and absolute discretion. Before any person shall be entitled to bid at the sale, such bidder must execute such acknowledgements as the Secured Party may require in order to acknowledge that such bidder has reviewed the Terms of Sale and is prepared to execute such investment letters and other acknowledgements as may be required therein. If the successful bidder defaults, then the Secured Party shall be authorized to reschedule the sale and to retain the bid deposit. The leaving of the bid deposit shall constitute the successful bidder’s waiver of any and all right, title and interest in and to the bid deposit, other than as a credit against the winning bid upon payment by the successful bidder of the winning bid amount in compliance with the Terms of Sale. The bid of any prospective purchaser who fails to tender proper payment may be rejected and the Secured Party may accept the next highest bid or re-offer the Membership Interest for sale, at the Secured Party’s option. Consummation of sale will be made immediately upon receipt of payment of the full bid price by delivery of an assignment of membership interest, specifying the transfer “AS-IS, WHERE-IS, WITH ALL FAULTS” and without representation or warranty. The successful bidder will be responsible for paying any taxes or additions thereto required to be paid in connection with the transfer, including, without limitation, any New York City and New York State real property transfer taxes payable in connection therewith. In the event that the Secured Party is unable for any reason to consummate the sale of the Membership Interest to the successful bidder, the Secured Party’s sole obligation to the bidder shall be the return of the principal amount of the bidder’s deposit, without interest. Other terms and conditions will be announced at the time of sale, and any of the foregoing may be waived or modified by the Secured Party in its discretion. The Secured Party may adjourn or cancel the sale hereby advertised or cause such sale to be adjourned from time to time, without written notice or further publication, by announcement at the time and place appointed for such sale, or any adjournment, and, without further notice or publication, such sale may be made at the time or place to which the sale may have been so adjourned.

The Pledge Agreement, the Transfer Documents, information relating to the Membership Interest, the Company, and the Property, and certain other information are available for review by a qualified prospective bidder by contacting the person named below. Potential bidders are encouraged to perform such due diligence as they deem necessary. All prospective bidders and others receiving or examining non-public information may be required to enter into a nondisclosure agreement and keep the information strictly confidential. No information provided to a prospective bidder in response to any such request shall constitute a representation or warranty of any kind with respect to such information, the Membership Interest, the Debtor, the Property or the public sale, it being expressly understood that the Secured Party makes no representations or warranties of any kind with respect to the foregoing or otherwise.

Prospective bidders may obtain additional information by visiting the website below or by contacting Jean Celestin, Jr., Managing Director, Eastdil Secured, 40 West 57th Street, 22nd Floor, New York, NY 10019, Tel.: 212-315-7200, Fax: 212-315-3602, Email: ES300W122@eastdilsecured.com. https://www.eastdilsecured.com/offerings/public/THW16/300West122ndStreet.htm

Mixed-Use Site for Sale in Jersey CityA development site is for sale on New Jersey’s Gold Coast.The three-acre parcel, in Jersey City, is approved for con-

struction of a residential complex with 370 units and roughly 200,000 square feet of commercial space. Bids are expected to come in around $30 million. Cushman & Wakefield has the list-ing.

The land is at 677 Grove Street, a few blocks north of the Holland Tunnel entrance. It’s alongside a light-rail line, and a buyer could negotiate with NJ Transit to revive an earlier plan to add a station at the property.

The seller is a partnership that includes Halpern Real Estate Ventures of New York, Lincoln Equities of East Rutherford, N.J., investor Robert Martin and L Group, a Bayonne, N.J., developer.

L Group acquired the land in 1999. The other partners later bought distressed debt on the property and assumed control in 2012.

The marketing campaign, which dubs the site Holland Park, highlights the growth of Jersey City and the rest of the Gold Coast — the local name for a string of towns along the Hudson River where luxury apartments have sprung up as less-expen-sive alternatives to Manhattan rentals.

Jersey City has 6,800 residential units under construc-tion, with another 18,000 in the development pipeline. In the immediate vicinity of the listed parcel, on the city’s border with Hoboken, more than 2,000 units are under way or planned. Some of those projects received city approval to exceed their as-of-right heights. A buyer of the Holland Park site could pur-sue that option to increase the number of potential units.

October 26, 2016 9Real EstateALERT

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ON THE MARKET

ON THE MARKET

Retail Property

Size

Estimated Value

Owner

Broker

Color

Safeway store, 4300 NE 4th Street, Renton, Wash.

60,000 sf $37.6 million Yield: 4.5%

Spirit Realty Capital, Dallas

CBRE Listed with an asking price. Fully occupied by grocer Safeway. Its triple-net lease matures in 2035, with two 10-year renewal options and 2% annual rent bumps. Current net operating income is $1.7 million.

Pa. Grocery-Anchored Center on BlockA grocery-anchored power center in Central Pennsylvania is

on the market with an estimated value of $60 million.The offering is for 373,000 square feet at the 500,000-sf

Monroe Marketplace, in Selinsgrove. A 127,000-sf Target store, the center’s shadow anchor, isn’t part of the listing. HFF is shop-ping the property for Excel Trust, a San Diego REIT that New York-based Blackstone acquired last year.

Monroe Marketplace is 99.6% leased, with a weighted aver-age remaining lease term of 6.5 years. The two biggest tenants are grocer Giant and Kohl’s, which together account for 38% of the space under leases that each run for nearly 12 more years.

Other major tenants include Best Buy, Dick’s Sporting Goods, T.J. Maxx, PetSmart, Staples and Ulta. Some 90% of the property’s gross income is generated by investment-grade ten-ants — 17% of it by Giant, which has sales of $363/sf.

The center, developed in phases between 2008 and 2015, is at 110-490 Marketplace Boulevard, about a mile from the 745,000-sf Susquehanna Valley Mall. The property is just off U.S. Route 15, the highway connecting to Harrisburg, Pa., 50 miles south. Some 40,000 vehicles pass the property daily and 69,000 people, with an average household income of $66,000, live within 10 miles.

October 26, 2016 10Real EstateALERT

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Parcel Available on NY’s East SideExtell Development is shopping a parcel on Manhattan’s East

Side.The site, at 310-314 East 86th Street in the Yorkville neigh-

borhood, currently houses three small residential buildings. The investment play is to raze them and construct a 71,000-square-foot building with apartments or residential condominiums, as well as ground-floor retail space.

Bids are expected to come in at about $700 per buildable foot, or $50 million. New York-based Extell, run by Gary Barnett, has given the listing to JLL.

The property, between First and Second Avenues, is being pitched to local and national developers interested in what

marketing materials call a “rapidly appreciating” neighbor-hood. The site is across from the entrance to a nearly completed station on the Second Avenue subway line. A Whole Foods supermarket opened a block away last year.

A buyer could construct a 20-story building that, at 210 feet, would tower over most other buildings in the neighborhood. There would likely be up to four residential units per floor.

Extell separately plans to build a residential property on the same block. After amassing sites along First Avenue between East 85th and East 86th Streets, Extell in July bought a contiguous retail property at 350 East 86th Street for $93 million. The occupant of that property, a Gristedes supermarket, will vacate the site. The transaction will enable Extell to add about 128,000 sf to the proj-ect. The purchase price worked out to $725 per buildable foot.

October 26, 2016 11Real EstateALERT

MARKET SPOTLIGHT

San Francisco Office PropertiesThe city remains a darling of investors seeking to minimize risk. Some $1.7 billion of large properties

traded in the first half, up from $1.4 billion a year earlier.Still, there are signs that fundamentals have peaked. The average occupancy rate has declined almost one

point from a year ago, to 93.7%, according to Kidder Mathews. The sky-high rents that technology firms are willing to pay continue to bolster the market. But Green Street

Advisors warns that the large concentration of such tenants leaves the city vulnerable to a downturn in the tech sector.

On the Market Hit SF Estimated ValueProperty Seller Market (000) ($Mil.) (Per SF) Broker211 Main Street CIM Group September 420 $400 $952 HFFFoundry Square 3 Tishman Speyer July 291 350 1,203 Eastdil Secured100 Pine Street Alaska Permanent, Unico September 402 285 709 JLLOne Post Street McKesson Group September 424 250 590 JLL150 Spear Street Principal Global Investors September 265 192 723 Cushman & Wakefield655 Montgomery Street Dividend Capital October 270 170 630 Eastdil Secured114 Sansome Street Credit Suisse May 192 145 755 JLL55 Hawthorne Street Invesco Real Estate September 143 125 874 JLL539 Bryant Street Zurich American Insurance September 56 50 893 Cushman & Wakefield

Recent Deals SF Sales PriceProperty Buyer Closed (000) ($Mil.) (Per SF) BrokerOne Front Street Paramount Group (Pending) 651 $521 $800 Eastdil SecuredMarket Center Blackstone July 770 510 662 Eastdil SecuredPhelan Building (760 Market Street) Hotung Family August 267 375 1,403 Cushman & Wakefield100 Montgomery Street Vanbarton Group June 431 284 659 Eastdil Secured123 Mission Street HNA Group August 346 255 737 Eastdil Secured353 Sacramento Street KBS Realty July 285 170 595 Eastdil SecuredThe Piers Invesco Real Estate August 85 103 1,212 Eastdil Secured600 Townsend Street Blackstone (Pending) 83 81 976 JLL240 Stockton Street Grosvenor Americas September 45 80 1,778 Newmark Grubb400 Montgomery Street TIAA (Pending) 85 50 588 CBRE420 Taylor Street Seven Equity Group October 78 45 577 Newmark Grubb6000 Shoreline Court Carlyle Group August 139 34 245 HFF

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October 26, 2016 12Real EstateALERT

Ashkenazy and previously worked on property investments for the Manhattan investment shop. He started this month at Brixmor’s New York headquarters as director of financial management. Brixmor, a REIT that Blackstone took public in 2014, owns some 500 shopping centers across the U.S.

Acquisitions pro David Seshens joined the staff at Raith Capital in recent weeks, after working on a few one-off deals for the New York investment shop. His focus is on property acquisitions, distressed-debt plays and commercial MBS investments. Seshens spent about two years at Continental Properties of Chatham, N.J., and before that worked at New York hedge-fund operator Avenue Capital for about eight years.

A pair of industry veterans formed Cadence Senior Living last month. The

Scottsdale, Ariz., shop will buy senior housing, independent-living, assisted-living and memory-care properties. The company is led by Robert Leinbach and Eric Gruber. Leinbach came from Walton International Group, a Canadian com-pany where he held multiple roles over nine years. Before leaving in January, he was president of its Walton Global Holdings unit, in charge of U.S. opera-tions. Gruber most recently ran his own development firm in Scottsdale, Sierra Pointe Management.

Two New York investment-sales brokers left Cushman & Wakefield last week. Senior director Lev Kimyagarov and director Josh Lipton joined the firm when it bought local boutique broker-age Massey Knakal around yearend 2014. Kimyagarov started at Massey in 2007, and Lipton signed on in 2011 after nine years as an attorney at Latham Watkins. Their next moves are unknown. The buzz is their depar-tures were planned before Cushman’s blockbuster hiring this month of a five-member brokerage team from Eastdil

Secured, led by Douglas Harmon and Adam Spies.

Veteran capital-raiser Rob Bilse has joined German investment shop Patrizia Immobilien to help expand its investor base. Bilse started last week as a direc-tor of international capital markets. He reports to Konrad Finkenzeller, international head of capital markets for the Augsburg-based firm. Bilse was most recently at London placement agent First Avenue Partners. He had earlier stints at Ackman-Ziff Real Estate, Prudential Real Estate Investors and Goldman Sachs.

Kevin Herstein joined AXA Investment Managers last month as a senior associ-ate, based in New York. He focuses on purchasing U.S. properties across asset classes for the Paris-based firm. Herstein previously spent two years at AIG Global Real Estate, where he was a senior associate. Before that, he had a three-year stint at CBRE following nearly two years at an affiliate of the brokerage, GEMSA Loan Services.