Trendwatch
TrendWatch: Biggest Deals for November 2008
Dec 1, 2008
TrendWatch
Atlanta
Biggest Lease
WEG Electric Corp. has leased the 250,000-SF 6655 Sugarloaf Pkwy. in the Business Park at Sugarloaf in Duluth, planning to relocate its North American headquarters from 1327 Northbrook Pkwy. in Suwanee. The subsidiary of Brazilian firm WEG S.A., will take occupancy in the first quarter of 2010. Darren Ross and Dave Watson of Grubb & Ellis Co. represented the tenant, and Brian Sutton of Duke Realty Corp. represented the landlord internally.
Biggest Sale
BPG Properties Ltd. scooped up the Post Woods apartment community in the Vinings/Cumberland submarket in the northwest suburbs of Atlanta from Post Apartment Homes L.P. for $52.8M. Located at 3200 Post Woods Drive, the property is one mile from the interchange of Interstates 75 and 285. The 494-unit garden-style community features two on-site lakes, walking trails and frontage along the Chattahoochee River. The acquisition was made on behalf of BPG Investment Partnership VIII & VIIA L.P. Madison Apartment Group, BPG’s multi-family operating concern, will manage the property.
Biggest Development
No major developments were reported.
Boston
Biggest Lease
Cengage Learning Inc. took 100,000 SF at 10-20 Channel Center, a recently redeveloped warehouse in South Boston’s Seaport District. CB Richard Ellis Inc. represented the landlord, Commonwealth Ventures L.L.C., and John Hennessey of GVA Williams represented the tenant. According to local sources, the rent is between $30 PSF and $40 PSF.
Biggest Sale
No major sales were reported.
Biggest Development
Sawyer Enterprises topped out construction of the $230M W Hotel & Residences, a 25-story hotel that will combine a 235-key hotel and 123 condominiums in Boston’s Theater District. Opening is scheduled for August 2009.
Chicago
Biggest Lease
DRW Holdings L.L.C. will take 125,000 SF at 540 West Madison St. in the West Loop, according to Crain’s Chicago Business reported. Jones Lang LaSalle Inc. represented the landlord, Bank of America Corp., and Steinco Inc. represented the tenant. According to Grubb & Ellis Co., asking rents for Class A office space in the West Loop reached $39.83 during the third quarter.
Biggest Sale
No major sales were reported.
Biggest Development
Holsten Real Estate Development Corp. began construction of Wilson Yard, a $150M mixed-use redevelopment project located primarily on the former site of a Chicago Transit Authority rail yard on the city’s North Side. A 180,000-SF Target store will anchor the project’s retail portion. Holsten also plans to build two affordable apartment buildings totaling 178 units there.
Dallas
Biggest Lease
Entech Inc. has leased 71,250 SF of industrial space in Fort Worth’s AllianceTexas from Hillwood. Lease rates in the area average about $4 PSF.
Biggest Sale
No major sales were reported.
Biggest Development
No major developments were reported.
Houston
Biggest Lease
No major leases were reported
Biggest Sale
Behringer Harvard acquired the 502,410-SF One BriarLake Plaza office building for $133.6M from Crescent Real Estate Equities L.P. Robert Williamson and Jeff Holinden of Holliday Fenoglio Fowler L.P. represented the seller.
Biggest Development
Historic Real Estate Inc. broke ground on the $700M WaterLights mixed-use project in Pearland. The 1.9 MSF development will include residential condominiums, brownstones, luxury apartments, office buildings, retail space, restaurants, three luxury hotels, a conference facility, a public park and a statue of each U.S. president. The park and gardens will open in 2009.
Los Angeles
Biggest Lease
Union Bank of California N.A. signed a lease extension for 345,000 SF of office space Downtown. The building has served as the bank’s Los Angeles headquarters since 1967. Robert Ortiz of Cushman & Wakefield Inc. and Craig Poletti of Union Bank represented the tenant. Alan Polley and Colin Shepherd represented the landlord, Hines, internally. Lease rates in the area average $3.23 PSF per month.
Biggest Sale
John Hancock Insurance Co. acquired the 1.8 MSF Chino South Business Park industrial property for $146.7M. CB Richard Ellis Inc. represented the seller.
Biggest Development
No major developments were reported.
New York City
Biggest Lease
Viacom International Inc. renewed and extended a 1.3 MSF lease at 1515 Broadway between 44th and 45th streets in Midtown Manhattan. The lease is the third-largest ever in Midtown Manhattan, according to SL Green Realty Corp., which owns the building in a joint venture with Canadian investment firm SITQ. Michael Laginestra, Scott Gottlieb and Andrew Sussman of CB Richard Ellis Inc. represented the tenant. Steven Durels, Neil Kessner and Kathy Crocco represented SL Green internally. Asking rents for Class A office space in Midtown Manhattan averaged $84.74 PSF during the third quarter, according to CB Richard Ellis.
Biggest Sale
A joint venture led by private investor Lloyd Goldman bought 1372 Broadway, a 568,000-SF, 21-story office tower between 37th and 38th streets in Midtown Manhattan. The principal owner, Wachovia Corp., sold the building at a loss only a year after paying SL Green Realty Corp. $285M for an 85 percent share. Eastdil Secured L.L.C. represented the seller and identified the buyer.
Biggest Development
Extell Development Co. is planning to build World Product Centre, a 1.5 MSF, 60-story office tower at 11th Avenue and West 34th Street on Manhattan’s West Side. Scheduled to open in winter 2013, the project would cost as much as $1B and would provide offices, showrooms, conference space and other facilities for medical product companies.
San Francisco
Biggest Lease
McDermott Will & Emery L.L.P. has signed a 10-year lease to occupy 84,689 SF of office space at 275 Middlefield Road in Menlo Park. Heller Ehrman L.L.P., which closed in October, held the space previously. George Fox and Hamilton Southworth of Studley Inc. represented the tenant.
Biggest Sale
TA Associates Realty acquired the 207,000-SF office tower at 235 Pine St. from Alecta Pensions for $75M.
Biggest Development
No major developments were reported.
South Florida
Biggest Lease
Janitorial and food-service products specialist LagasseSweet leased 240,000 SF at Flagler Station, South Florida’s largest business park. Rafael Romero and Stuart Gordon of Flagler Development Group secured the 10-year lease. Trevor Ragsdale, Michael Burns, Ed Lyden and Wayne Schuchts of Jones Lang LaSalle Inc. represented the tenant, which sought a location that would arm it with the ability to expand 210,000 SF. The tenant’s space will be in a 328,000-SF office/industrial building that is under construction. The lease is the largest in the Miami-Dade Airport West submarket this year and Florida’s second-largest industrial deal this year, according to Flagler Development.
Biggest Sale
No major sales were reported.
Biggest Development
Miami Worldcenter—a nine-block, master-planned urban renewal project that spans more than 12 MSF of buildable area across 25 acres—has won approval from the Miami City Commission for special district zoning. The commission also approved a development agreement ensuring the developer’s commitment to provide open public space. The project is being developed by Miami Worldcenter Group, a partnership between The Falcone Group and Marc Roberts Cos. Elkus Manfredi Architects is serving as master planner of the project, which will be developed in stages, starting with hospitality, retail and civic space.
Washington, D.C.
Biggest Lease
Bechtel Corp. has renewed 325,879 SF in the Westview Corporate Campus in Frederick, Md., enabling the engineering, construction and project management firm to remain in the space for 10 years. The building’s owner is Gateway Franklin Inc., according to the Washington Business Journal. Meredith LaPier and Andy Cole of CB Richard Ellis Inc. represented the tenant.
Biggest Sale
Guardian Life Insurance Co. of America nabbed Quincy Crossing, a 110,900-SF Class A office building at 801 N. Quincy St. in Arlington, Va., for $55.5M from Normandy Real Estate Partners, which will serve as the property’s manager. Cassidy & Pinkard Colliers represented the seller, which acquired Quincy Crossing as part of a 13-building, $540M deal with Morgan Stanley Real Estate in 2006.
Biggest Development
Cassidy & Pinkard Colliers closed a $194M, 54-month construction loan for 1000 Connecticut Ave., N.W., on behalf of the 12-story, 383,392-SF office building’s owner, Connecticut & K Associates L.L.C. A consortium of lenders led by Chevy Chase Bank provided the financing. Connecticut & K Associates is seeking LEED gold certification.
TrendWatch
Atlanta
Biggest Lease
WEG Electric Corp. has leased the 250,000-SF 6655 Sugarloaf Pkwy. in the Business Park at Sugarloaf in Duluth, planning to relocate its North American headquarters from 1327 Northbrook Pkwy. in Suwanee. The subsidiary of Brazilian firm WEG S.A., will take occupancy in the first quarter of 2010. Darren Ross and Dave Watson of Grubb & Ellis Co. represented the tenant, and Brian Sutton of Duke Realty Corp. represented the landlord internally.
Biggest Sale
BPG Properties Ltd. scooped up the Post Woods apartment community in the Vinings/Cumberland submarket in the northwest suburbs of Atlanta from Post Apartment Homes L.P. for $52.8M. Located at 3200 Post Woods Drive, the property is one mile from the interchange of Interstates 75 and 285. The 494-unit garden-style community features two on-site lakes, walking trails and frontage along the Chattahoochee River. The acquisition was made on behalf of BPG Investment Partnership VIII & VIIA L.P. Madison Apartment Group, BPG’s multi-family operating concern, will manage the property.
Biggest Development
No major developments were reported.
Boston
Biggest Lease
Cengage Learning Inc. took 100,000 SF at 10-20 Channel Center, a recently redeveloped warehouse in South Boston’s Seaport District. CB Richard Ellis Inc. represented the landlord, Commonwealth Ventures L.L.C., and John Hennessey of GVA Williams represented the tenant. According to local sources, the rent is between $30 PSF and $40 PSF.
Biggest Sale
No major sales were reported.
Biggest Development
Sawyer Enterprises topped out construction of the $230M W Hotel & Residences, a 25-story hotel that will combine a 235-key hotel and 123 condominiums in Boston’s Theater District. Opening is scheduled for August 2009.
Chicago
Biggest Lease
DRW Holdings L.L.C. will take 125,000 SF at 540 West Madison St. in the West Loop, according to Crain’s Chicago Business reported. Jones Lang LaSalle Inc. represented the landlord, Bank of America Corp., and Steinco Inc. represented the tenant. According to Grubb & Ellis Co., asking rents for Class A office space in the West Loop reached $39.83 during the third quarter.
Biggest Sale
No major sales were reported.
Biggest Development
Holsten Real Estate Development Corp. began construction of Wilson Yard, a $150M mixed-use redevelopment project located primarily on the former site of a Chicago Transit Authority rail yard on the city’s North Side. A 180,000-SF Target store will anchor the project’s retail portion. Holsten also plans to build two affordable apartment buildings totaling 178 units there.
Dallas
Biggest Lease
Entech Inc. has leased 71,250 SF of industrial space in Fort Worth’s AllianceTexas from Hillwood. Lease rates in the area average about $4 PSF.
Biggest Sale
No major sales were reported.
Biggest Development
No major developments were reported.
Houston
Biggest Lease
No major leases were reported
Biggest Sale
Behringer Harvard acquired the 502,410-SF One BriarLake Plaza office building for $133.6M from Crescent Real Estate Equities L.P. Robert Williamson and Jeff Holinden of Holliday Fenoglio Fowler L.P. represented the seller.
Biggest Development
Historic Real Estate Inc. broke ground on the $700M WaterLights mixed-use project in Pearland. The 1.9 MSF development will include residential condominiums, brownstones, luxury apartments, office buildings, retail space, restaurants, three luxury hotels, a conference facility, a public park and a statue of each U.S. president. The park and gardens will open in 2009.
Los Angeles
Biggest Lease
Union Bank of California N.A. signed a lease extension for 345,000 SF of office space Downtown. The building has served as the bank’s Los Angeles headquarters since 1967. Robert Ortiz of Cushman & Wakefield Inc. and Craig Poletti of Union Bank represented the tenant. Alan Polley and Colin Shepherd represented the landlord, Hines, internally. Lease rates in the area average $3.23 PSF per month.
Biggest Sale
John Hancock Insurance Co. acquired the 1.8 MSF Chino South Business Park industrial property for $146.7M. CB Richard Ellis Inc. represented the seller.
Biggest Development
No major developments were reported.
New York City
Biggest Lease
Viacom International Inc. renewed and extended a 1.3 MSF lease at 1515 Broadway between 44th and 45th streets in Midtown Manhattan. The lease is the third-largest ever in Midtown Manhattan, according to SL Green Realty Corp., which owns the building in a joint venture with Canadian investment firm SITQ. Michael Laginestra, Scott Gottlieb and Andrew Sussman of CB Richard Ellis Inc. represented the tenant. Steven Durels, Neil Kessner and Kathy Crocco represented SL Green internally. Asking rents for Class A office space in Midtown Manhattan averaged $84.74 PSF during the third quarter, according to CB Richard Ellis.
Biggest Sale
A joint venture led by private investor Lloyd Goldman bought 1372 Broadway, a 568,000-SF, 21-story office tower between 37th and 38th streets in Midtown Manhattan. The principal owner, Wachovia Corp., sold the building at a loss only a year after paying SL Green Realty Corp. $285M for an 85 percent share. Eastdil Secured L.L.C. represented the seller and identified the buyer.
Biggest Development
Extell Development Co. is planning to build World Product Centre, a 1.5 MSF, 60-story office tower at 11th Avenue and West 34th Street on Manhattan’s West Side. Scheduled to open in winter 2013, the project would cost as much as $1B and would provide offices, showrooms, conference space and other facilities for medical product companies.
San Francisco
Biggest Lease
McDermott Will & Emery L.L.P. has signed a 10-year lease to occupy 84,689 SF of office space at 275 Middlefield Road in Menlo Park. Heller Ehrman L.L.P., which closed in October, held the space previously. George Fox and Hamilton Southworth of Studley Inc. represented the tenant.
Biggest Sale
TA Associates Realty acquired the 207,000-SF office tower at 235 Pine St. from Alecta Pensions for $75M.
Biggest Development
No major developments were reported.
South Florida
Biggest Lease
Janitorial and food-service products specialist LagasseSweet leased 240,000 SF at Flagler Station, South Florida’s largest business park. Rafael Romero and Stuart Gordon of Flagler Development Group secured the 10-year lease. Trevor Ragsdale, Michael Burns, Ed Lyden and Wayne Schuchts of Jones Lang LaSalle Inc. represented the tenant, which sought a location that would arm it with the ability to expand 210,000 SF. The tenant’s space will be in a 328,000-SF office/industrial building that is under construction. The lease is the largest in the Miami-Dade Airport West submarket this year and Florida’s second-largest industrial deal this year, according to Flagler Development.
Biggest Sale
No major sales were reported.
Biggest Development
Miami Worldcenter—a nine-block, master-planned urban renewal project that spans more than 12 MSF of buildable area across 25 acres—has won approval from the Miami City Commission for special district zoning. The commission also approved a development agreement ensuring the developer’s commitment to provide open public space. The project is being developed by Miami Worldcenter Group, a partnership between The Falcone Group and Marc Roberts Cos. Elkus Manfredi Architects is serving as master planner of the project, which will be developed in stages, starting with hospitality, retail and civic space.
Washington, D.C.
Biggest Lease
Bechtel Corp. has renewed 325,879 SF in the Westview Corporate Campus in Frederick, Md., enabling the engineering, construction and project management firm to remain in the space for 10 years. The building’s owner is Gateway Franklin Inc., according to the Washington Business Journal. Meredith LaPier and Andy Cole of CB Richard Ellis Inc. represented the tenant.
Biggest Sale
Guardian Life Insurance Co. of America nabbed Quincy Crossing, a 110,900-SF Class A office building at 801 N. Quincy St. in Arlington, Va., for $55.5M from Normandy Real Estate Partners, which will serve as the property’s manager. Cassidy & Pinkard Colliers represented the seller, which acquired Quincy Crossing as part of a 13-building, $540M deal with Morgan Stanley Real Estate in 2006.
Biggest Development
Cassidy & Pinkard Colliers closed a $194M, 54-month construction loan for 1000 Connecticut Ave., N.W., on behalf of the 12-story, 383,392-SF office building’s owner, Connecticut & K Associates L.L.C. A consortium of lenders led by Chevy Chase Bank provided the financing. Connecticut & K Associates is seeking LEED gold certification.
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