Archive: June, 2008
Joseph N. DiStefano
UPDATE: Brandywine says it's talked to U.S. and German investors but it's not ready to announce any Cira investors.
ORIGINAL ITEM: The commercial real estate rumor mill says Brandywine Realty Trust, Radnor, has lined up buyers for its current Cira Center and planned Cira South developments on the west bank of the Schuylkill in Philadelphia.
According to one version from a pro who's been right before, Germany's SEB Group would take over Cira, which is almost 100 percent leased, while JPMorgan would agree to invest in Cira South, where Brandywine CEO Jerry Sweeney hopes to land the BlackRock investment group as a tenant, with help from state and city tax breaks. No comment yet from Brandywine.
Meanwhile, Brandywine said today it has agreed to sell most of its northern California office space - four buildings and a vacant new development, all in Oakland - for $270 million in cash, plus $96 million in debt, plus a $40 million payment in 2010. Release here.
Lazard Frères & Co. acted as financial advisor to Brandywine, and CB Richard Ellis helped sell the properties.
The sale leaves Brandywine, a Philadelphia-centric company that went moderately national in the late building boom, with around 550,000 square feet of offices in Northern California, plus two future development sites.
Joseph N. DiStefanoGoldman Sachs says Barack Obama would be ``a negative for defense stocks'' if he's elected in November, while Boeing Co., Lockheed Martin Corp. and other military contractors may not fare any better under John McCain, Bloomberg News reports. Story here.
The candidates are both skeptical about Lockheed Martin's F-22 fighter and the Army's $159 billion Future Combat Systems, a modernization plan jointly managed by Boeing and SAIC Inc. Lockheed and Boeing are major Philadelphia-area employers, though most of those weapons systems are being developed elsewhere.
``When you get beyond the issue of the war in Iraq, Senator McCain and Senator Obama sound remarkably similar on many defense issues,'' Loren Thompson, a defense analyst at the Lexington Institute in Arlington, Virginia, tells Bloomberg. Both oppose big Cold War-type weapon systems and favor small-conflict support programs like the Littoral Combat Ship for Marine landings.
Joseph N. DiStefano
UPDATED 7/1: HIG Capital, Miami, is scheduled to clinch the sale of Shapes/Arch Holdings LLC at a hearing on July 8, said J. Scott Victor, senior managing director and co-head of the Special Situations Group at National City Investment Banking, West Conshohocken, which is overseeing the sale. The closing will follow later in July.
HIG agreed to pay $31.5 million and take over Shape’s $60 million bank debt to CIT Group and other lenders. That beat an earlier $26 million offer by Versa Capital Management Inc. of Philadelphia. Shapes been owned by the Kendall family and management.
Teamsters Local 627 and other Shapes unions agreed that Shapes will stop funding the workers’ pension plan, said Victor.
HIG has been buying up aluminum extruders around the country. In 2005 HIG bought Signature Aluminum, Greenville, Pa. In 2006 it added Temroc Metals Inc., Hamel, Minn., and Atlantic Aluminum LLC, Lumber Bridge, N. Car.
Joseph N. DiStefanoNewSpring Capital newspringcapital.com says it led a group that invested $5 million in Core Essence Orthopaedics, Inc., Yardley, which makes arthroscopic surgery devices for treating damaged limbs. Release here.
NewSpring's Zev Scherl joins the Core Essence board. Core Essence is run by CEO Shawn Huxel and cofounders Alan Miller and Jeff Miller. The trio previously worked at New York-based Small Bone Innovations (SBi).
Joseph N. DiStefanoOur correspondents are going on vacation, so we are, too. See you next week. Or contact PhillyInc's Mike Armstrong at email@example.com
Joseph N. DiStefanoLingwood Partners Inc., a Lakewood, N.J. firm that includes investor Yakov Prager and a group of his business partners, has purchased 2621 Van Buren Ave., Valley Forge Corporate Center, for $24 million from BPG Properties Ltd., the Yardley-based commercial real estate company headed by Daniel DiLella and Arthur Pasquarella, said CB Richard Ellis Group Inc. Executive Vice President Michael Hines, who represented BPG.
Prager’s group has purchased over $200 million in office real estate, including properties owned by Liberty Property Trust and Brandywine Realty Trust, in Bucks, Berks, Dauphin, Lehigh, and other eastern Pennsylvania counties since early 2007, Hines said.
Tenants at 2621 include Comcast, PayChex, Texas Instruments and PJM Interconnection.