Capital Security Advisors, Brickman Associates, and Shimizu Jointly Acquire Two Office Buildings in Boston
Shimizu Corporation (President Kazuyuki Inoue) recently acquired two rental office buildings in the Back Bay neighborhood of, Boston, Massachusetts through its United States based real estate subsidiary as a part of its overseas real estate development business expansion plan. The purchase price of these buildings, located at 535 and 545 Boylston Street, was approximately 17 billion yen ($150 million USD). To enhance the value of these buildings, Shimizu will implement an infrastructure upgrade plan with a projected budget of approximately 1 billion yen ($8 million USD).
Shimizu’s U.S. subsidiary, Shimizu Realty Development (U.S.A.), Inc. (SRD), which is responsible for the real estate business in the U.nited States., jointly established the ownership entity, SCB Boylston PO, LLC, with local real estate companies Capital Security Advisors and Brickman Associates. SCB Boylston PO, LLC will own and operate these two properties. Under this corporate structure, SRD owns a stake of approximately 97%.
Boylston Street is centrally located within Boston’s Back Bay neighborhood which is a well-known, high-class office street lined with law firms and financial institutions. Back Bay is adjacent to East Cambridge where a cluster of startups in the life sciences field and other sectors is found; The Back Bay is now beginning to attract this high-demand, fast growing sector.
The acquired properties are comprised of two rental office buildings, which are partially connected on several floors. Each building contains 1 basement floor and 13 above-ground floors, with 17,593 m2 (189,372 square feet) of total floor area, as well as, LEED Gold Certification status. The current occupancy is approximately 90%. The buildings will generate stable rental income and Shimizu expects to divest the properties in accordance with the expected hold period.
Shimizu’s Mid-Term Management Plan (2019-2023), publicly announced in 2019, targeted a strengthened real estate development business in North America. Based on this Mid-Term Management Plan, Shimizu has expanded its real estate business in the U.S. with the acquisition of the Albano Building, a rental office building in New York City in 2019, and the acquisition of The Shaw, a brand-new luxury apartment building in Washington, D.C. in 2020. Shimizu will continue to expand upon its value-add-type investments in the office and rental apartment sectors in major U.S. cities, primarily on the East Coast, while also considering investments in the development of logistics facilities in the Southeast, in order to diversify its real estate portfolio.
≪For Reference≫
Property Overview
| Name | 535-545 Boylston |
|---|---|
| Location | 535 & 545 Boylston St., Boston, Massachusetts, USA |
| Building size | 1 basement floor, 13 above-ground floors, floor space 17,593 m2 (189,372 sq-uare feet), site area 1,619 m2 (17,426 sq-uare feet) |
| Year built | 1967（535）and 1972（545） |
| Purpose | Office and Retail |
Joint Business Overview
Real Estate Business Subsidiary
Shimizu Realty Development (U.S.A.) Inc.
| Location | New York State |
|---|---|
| Director | Haruhiko Washimi |
| Established | 2002 |
| Business Overview | US subsidiary of Shimizu Corporation undertaking value-add-type investments in offices and residences in East Coast gateway cities, as well as development in logistics facilities in the Southeast. Manages and operates properties with a mid-to-long term investment horizon. |
Partner
Capital Security Advisors
| Principal | Dennis R. Irvin |
|---|---|
| Location | New York City |
| Established | 2011 |
| Business Overview | Real estate investment and advisory firm that invests in and manages assets with a focus on commercial real estate and infrastructure. Provides advisory services for optimizing real estate portfolios and facilitating real estate transactions. |
Brickman Associates
| President | Bruce S. Brickman |
|---|---|
| Location | Connecticut |
| Established | 1993 |
| Business Overview | Real estate firm based in New York. Manages assets for institutional investors and High Net Worth individuals with a proprietary investment management platform. Also owns and administers commercial real estate. |
Lawyers of Shimizu for transaction
DLA Piper
| Partner | Michael T. Haworth |
|---|---|
| Location | New York State |
| Established | 2005 |
Nagashima Ohno & Tsunematsu NY LLP
| Partner | Ryo Okubo |
|---|---|
| Location | New York State |
| Established | 2010 |
The information contained in this news release is the current information on the date of publication. Please be aware that this information may have changed by the time you view it. Please contact the company to inquire for further details.
A Joint Venture between Shimizu Realty Development and Capital Security Advisors Acquired The Shaw, a Newly-Built 69-unit apartment Development in Washington, D.C.
WASHINGTON D.C. – JLL Capital Markets announced today that it has closed the $49 million sale of The Shaw, a multi-housing apartment community in the Northwest Washington D.C. area.
JLL completed the sale from the seller, Monument Realty, to the buyers, a joint venture between Shimizu Realty Development (U.S.A.) Inc. and Capital Security Advisors, LLC.
The Shaw is located next to the D.C. area’s most sought-after restaurants, shopping and entertainment, with the prominent Logan Circle, U Street Corridor,14th Street Corridor and Bloomingdale neighborhoods just a few blocks away. The Walk Score® for locals is 98 and 92 for Bike Score® with easy to access to all that the “live-work-play” neighborhood has to offer, with nearly 70% of locals using public transportation, walking or biking to work. The Shaw is adjacent to the Shaw/Howard University Station and Yellow Line. For those who prefer to drive, the apartments are close to the 14th Street roadway that links directly to I-395 and Route 1.
“In addition to the lively entertainment scene, The Shaw has unmatched proximity to Washington D.C.’s sought-after employment opportunities,” said Dennis Irvin, President of Capital Security Advisors LLC. “The emergence of this neighborhood and nearby areas has been increasing over the past several years and has even become a second base for the world’s largest e-commerce platform.”
The Shaw apartments’ design exhibits redefined living, from open layouts to city spa bathrooms touting frameless glass showers and ascent wall tiling to chef-caliber kitchens. Personal outdoor areas for residents include private balconies and breathtaking views of their city. In the main areas, The Shaw has a welcoming lobby filled with comfortable seating and atmospheric lighting, a rooftop terrace and lounge, and is powered by smart home technology – app friendly building access, latch keyless entry, virtual front desk and integrated parcel locker systems for deliveries.
“The Shaw is truly a trophy asset with exquisite design and superior apartment unit layouts. We are excited to add it to our portfolio,” continued Irvin.
The JLL Capital Markets team representing the seller was led by Managing Directors Walter Coker and Brian Crivella and Director Robert Jenkins.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
For more news, videos and research resources on JLL, please visit our newsroom.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion, operations in over 80 countries and a global workforce of more than 94,000 as of March 31, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Monument Realty
Monument Realty, an award-winning, full-service real estate firm, has been leading the way by embracing challenges and creating opportunities for clients and investors since 1998. Monument Realty’s development portfolio includes more than six million square feet of Class A office space, 4,500 residential units and several hotel properties valued at nearly $6 billion.
About Shimizu Realty Development (U.S.A.), Inc.
Shimizu Realty Development (U.S.A.), Inc. (SRD) is a real estate investment subsidiary of Shimizu Corporation (Shimizu) which is a leading construction company in Japan. Shimizu is powerfully expanding its real estate business outside of Japan not only in the US, but also in Southeast Asian countries, including Singapore, Indonesia, and Vietnam.
About Capital Security Advisors, LLC
Capital Security Advisors, LLC (CSA) is a privately-owned investment and asset management firm focused on infrastructure and commercial real estate. CSA seeks to provide investors with attractive risk-adjusted returns from funds and direct investments in high quality assets that are beneficiaries of long-term demographic and secular trends. CSA also provides domestic and international investors with strategic advisory services to optimize portfolio values and to assist in transaction execution.
Capital Security Advisors acquires Eden Hill Medical Center in Dover, Delaware.
DOVER, Del., and DALLAS, TX.– MedProperties Realty Advisors, LLC announced that it has formed a joint venture (JV) with Capital Security Advisors and Physicians Realty Trust (NYSE: DOC) to acquire its first healthcare property in Delaware – the 140,205 square foot, multi-tenant Eden Hill Medical Center in Dover. The acquisition closed on October 31.
The Class A, three-story facility at 200 Banning St. is less than a mile from Bayhealth Kent General Hospital, part of the region’s leading healthcare system. The medical office building (MOB) is 94 percent leased to a diverse roster of 23 tenants representing Dover’s leading physician practices that include gynecology, urology, and cardiology, including some practices affiliated with Bayhealth. The MOB also includes a very successful, 24,000 square foot surgery center.
The seller of the property was Eden Hill Medical Center, LLC, which was formed by some of the physician group tenants that originally developed the building in 2008 as part of a 23-acre master planned site that is owned by an affiliated entity. To date, the only other facility developed on the site is a rehabilitation/skilled nursing facility.
Darryl Freling, Managing Principal of MedProperties Realty Advisors, a national healthcare real estate private equity firm headquartered in Dallas, says MedProperties executives are pleased with their first acquisition in Delaware, which now gives the firm investments in 24 states.
“We acquired the MOB on an off-market basis after being introduced to the investment opportunity by Dennis Irvin, the CEO of Capital Security Advisors who had a relationship with the seller. The MOB checked every box for us. The project is a Class A, institutional facility with a long, weighted average lease term from the area’s leading practice groups as well as tenants affiliated with the area’s leading hospital system, and has been over 90% leased since it was developed in 2008. The MOB includes a very successful surgery center, and Delaware is a CON state.” says Mr. Freling.
Capital Security Advisors, a Boston-based investment management and advisory firm focused on infrastructure and real estate, brought the deal to MedProperties and holds an equity position in the JV.
“Capital Security Advisors had an agreement in principle with the seller to purchase the property, but we needed a partner with capital and healthcare real estate experience,” explains Dennis Irvin, Principal of the firm. “We didn’t know MedProperties, but they were recommended to us, so we introduced them to the project. We are now very pleased with our successful partnership with MedProperties as well as DOC REIT.”
Mr. Freling noted that MedProperties is the majority owner and manager of the JV, and DOC committed to a 49 percent equity stake in the project.
“We invest better and grow through our relationships” says John Thomas, President and CEO of Physicians Realty Trust, a Milwaukee-based self-managed healthcare real estate investment trust that acquires, owns and manages healthcare properties. “Eden Hill Medical Center is an outstanding example of the future of healthcare delivery, with a healthcare ecosystem anchored by an ambulatory surgery center and opportunity for future growth. We appreciate the MedProperties team for inviting us to participate in the Eden Hill Investment.”
“This transaction required months of legal work to revise and amend aspects of the original, 23-acre master plan” Mr. Freling continues. “We had to make a number of changes, including breaking out the MOB with a separate tax ID, and creating a REA that will govern all of the parcels within the master plan”.
“We also negotiated rights of first refusal on the remaining, undeveloped parcels within the 23-acre property. We’ve been building close relationships with the landowner, tenants and other local healthcare providers, so we’re excited to work with them on potential future development opportunities on the site.”
Debt for the acquisition was provided by Capital One, with a participation by Siemens Financial Services.
About MedProperties Realty Advisors
MedProperties Realty Advisors LLC is a Dallas-based healthcare real estate private equity firm that invests on a direct and an indirect basis (through joint venture relationships) in the development of new, value-add, and stabilized healthcare real estate, including multitenant medical office buildings and single-tenant, specialty healthcare facilities throughout the U.S. MedProperties invests through its discretionary funds, and through stand-alone investment vehicles. MedProperties is dedicated solely to investments in healthcare real estate. For further information on MedProperties, please visit www.medpropertieslp.com.
About Capital Security Advisors
Capital Security Advisors is an investment management and advisory firm specializing in infrastructure and real estate that seeks to provide investors with attractive risk-adjusted returns in high-quality assets. Returns are generated through the management of the Infrastructure Opportunity Fund ™, a long-short hedge fund investing in debt and equity projects and enterprises, and through real estate investment services. Services include advisory, investment management and asset management with a focus on demographically driven, multifamily, healthcare, and office properties in the fastest-growing regions of the United States. For more information please visit capitalsecurityadvisors.com
About Physicians Realty Trust
Physicians Realty Trust (NYSE:DOC) is a self-managed healthcare real estate investment trust that acquires, owns and manages healthcare properties that are leased to physicians, hospitals and healthcare delivery systems and other healthcare providers. The management team includes healthcare professionals with more than 50 years of experience in healthcare executive management, policy, law, and finance, as well as experience with real estate acquisitions, development and property management. Through our healthcare specific knowledge, we earn the trust of physicians, hospitals, and other health care providers by helping them better serve their patients, partners and payers. In turn, our investments in these providers deliver reliable dividends and stock price appreciation for our investors. For additional information, please visit: www.docreit.com.
This article originally appeared on wolfmediausa.com
Capital Security Advisors and Tokyu Land US Corporation Joint Venture Acquires Madison House, a Newly Constructed Luxury Residential Development in Washington D.C.’s Dupont Circle
NEW YORK–(BUSINESS WIRE)–Capital Security Advisors, LLC, an investment management and advisory firm specializing in infrastructure and real estate, announced today that its joint venture with Tokyu Land US Corporation acquired Madison House, a newly constructed luxury residential development in Washington D.C.’s exclusive Dupont Circle neighborhood.
The Capital Security Advisors and Tokyu Land US Corporation joint venture was formed to invest in high- quality multifamily properties and to provide co-investment opportunities for institutional and private investors. Tokyu Land US Corporation is the United States subsidiary of Tokyu Land Corporation, a core company of Tokyo, Japan-based Tokyu Fudosan Holdings Corp., a multibillion-dollar real estate corporation listed on the Tokyo Stock Exchange (3289.T). “Madison House is perfectly aligned with our focus on high-quality multifamily properties in urban infill markets with strong demographics, population growth and high barriers to new development. We are honored to be 50/50 partners with Tokyu Land US Corporation in acquiring this premier asset,” said Dennis Irvin, a Principal of Capital Security Advisors and the founder of its Real Estate Group. “We expect several additional joint venture investments together in the near future.”
Madison House is a seven-story, 38,141 square foot, 51-unit development located at 1772 Church St. NW in Washington D.C.’s Dupont Circle neighborhood, where opportunities for new development are extremely limited. It is only the second new multifamily asset delivered in the neighborhood since 2015, and only the fifth delivered in the past 50 years. “This unique, high-quality property is in one of the most desirable residential neighborhoods of Washington, D.C.,” said Dennis Irvin. “Madison House represents our commitment to identifying and acquiring premium investment opportunities for our investors.”