ISSUE HIGHLIGHTS Volume 29, Issue 4 February 24 - March 9, 2017 SPO TLIGHTS Commercial Office Properties 7-20A Levin Mgmt. expands management portfolio
E Performance reflects continued robust activity in the NJ Regional Marketplace Cushman&Wakefield’sMetro. AreaCapital Markets Group reaches $3.2 billion in 2016 AST RUTHERFORD, NJ — Cushman & Wakefield’s Metropoli-
Bruce Lane , executive VP and managing director of Me- ridian, said the firm will con- tinue to pursue its successful investment strategy with the new fund. “Our investment strategy is focused on well-located, insti- tutional-quality assets near Metro stations, major high- ways, and walkable amenities in submarkets such as Wash- ington, DC; Tysons, Arlington, Alexandria and Reston, VA.; and Bethesda and Rockville, MD,” Lane said. “These are places where we can create value through repositioning, renovations, leasing, redevel- opment, development and land entitlements.” Meridian has already com- pleted five Fund II transactions totaling over $400 million: International Pl., a 12-story office building at 1735 Lynn St. in Rosslyn, VA. The Meridian Group is renovating and reposi- tioning the 293,539 s/f building. 1400 L St., a 12-story class A office building at the corner of L and 14th Sts. inWashington, DC. Merin noted that his team is watching closely for shifts in the market’s after the election this fall. “This is an election year – and a strange one at that,” he noted. “Wall Street has been doing well, but an- other hit could have investors again stepping to the sidelines. That said, if the economy con- tinues on its positive – albeit slow – trajectory the real estate investment sales market will continue to perform well.” n continued on page 4A tivity, as well as land, retail and multifamily trades. “Bid- ding activity across the board picked up nicely following a first-quarter slowdown,” Merin noted. “It may not be as fast- paced as last year, but is strong enough to ensure multiple healthy bidders per transac- tion. The influx of overseas money to the New Jersey/New York region remains impres- sive.”
BETHESDA, MD — Having fully invested its first discre- tionary real estate fund in Washington, DC real estate, The Meridian Group has closed its second fund, Meridian Re- alty Partners II, L.P., with $231.6 million raised from institutional investors. Meridian also raised and invested an additional $80 mil- lion of co-investment capital in Fund II transactions to date. With leverage and additional “We have seen reports about 2016 being an off year for investment sales, but in real- ity activity remains extremely healthy,” Merin said. “Nation- ally, year-over-year transac- tion totals are down, but it is important to consider that 2015 was very strong – and that 2016 got off to a rough tan Area Capital Markets Group has completed 2016 with more than $3 billion in commercial real estate sales volume in 74 transactions, both of which are a record for the team. According to Andrew Merin, who co-founded the team with David Bernhaut in 1987, this impressive per- formance reflects continued robust investment activity in the New Jersey regional mar- ketplace.
70 & 90 Hudson St.
start with the volatility on Wall Street. Without ques- tion, capital continues to chase opportunity throughout the greater New York/New Jersey suburbs.” In fact, the Metropolitan Area Capital Markets Group in recent months orchestrated two blockbuster office sales illustrating this point. They in- cluded Novo Nordisk’s 762,000 s/f North American headquar- ters in Plainsboro, which Hana Asset Management Co. pur- chased form Ivy Equities (and
deals fit our value-add invest- ment strategy very well, and we continue to be bullish on the DC real estate market. We’ve been investing in this region for the past 24 years, and we look forward to investing here for many more years to come.” Meridian has been an active buyer in the DC market. The firm, which invests exclusively in the metropolitan DC area, is now one of the largest fund operators in Washington. Total capitalization for acqui- sitions and development is over $2.5 billion during the past six years. Meridian has raised ap- proximately $1.0 billion of total equity capital through its first two funds. “We are very pleased with what we have accomplished with our funds,” said Gary Block , chief investment officer of Meridian. “Our proven track record, investment strategy and capabilities, along with the long-term strength of the Washington real estate mar- ket, attracted our institutional investors. We appreciate their confidence in us.” Intercontinental). The $305 million transaction marked the largest single-asset sale in New Jersey in 2016. In Jersey City, the team inked the $299 million sale of 70 & 90 Hudson St. from Gramercy Property Trust to Spear Street Capital – the market’s second-largest office transaction. Combined, the twin class A buildings total nearly 858,000 s/f . In addition to 40 office build- ing sale transactions, the team also has been involved in sig- nificant industrial sales ac-
The Meridian Group closes its second fund with $231.6 million raised for DC real estate
Upcoming Conferences March 9, 2017 3rd Annual NJ Land Development Summit March 30 Pittsburgh Multifamily Summit For more information, please contact: Linda at 781-871-3456 or firstname.lastname@example.org
co-investment capital, the firm expects to acquire properties totaling $1.5 billion for its new fund over the next several years. Meridian’s first fund, Me- ridian Realty Partners I, L.P. raised $160 million of discre- tionary funds, along with ad- ditional co-investment capital of $510 million, for a total of $670 million for acquisitions and development projects. To- tal capitalization is expected to be $1.8 billion. “I am very proud of our management team, which has grown rapidly and done an incredible job of raising and investing capital in the DC market,” said David Cheek , president of Meridian. “These Shown from left: Gary Block, David Cheek and Bruce Lane
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