Leasing: Did You Know?
Sales: Did You Know?
During the first quarter of 2010, the Segal Co. will begin to transition from its One Park Ave. offices in Manhattan to
156,000 sf at 333 W. 34th St. SL Green Realty Corp., which owns the building, signed the consulting firm to a 15-year
lease. The 350,000-sf property is currently 100% leased by Citigroup, which will be vacating the premises in 2009…
Completely filling Matrix Development Group’s 102 Melrich Rd. distribution facility in Cranbury, NJ is Aurobindo USA
Inc. The pharmaceutical company will use the 103,350-sf property for office, general warehouse and distribution functions. Jones Lang LaSalle represented Aurobindo, while Matrix spoke for itself…Bloomingdale’s will open its first
Arizona store in the 144-acre CityNorth, a mixed-use development in Phoenix. The tenant will be one of the retail anchors
for the project’s second phase, the Boulevard, set to open in
fall 2009. Bloomingdale’s will occupy 180,000 sf on three
levels. CityNorth is being developed by Related Cos. and
Thomas J. Klutznick Co…The AMB Clipper Distribution
Center in Los Angeles’ South Bay submarket is now fully
leased to USC Intermodal. Owner AMB Property Corp.
renovated the 199,000-sf vacant property before leasing it
to the third-party logistics provider…Virchow, Krause &
Co. LLP is relocating its offices within Michigan Plaza in
Chicago. The accounting firm is moving into 47,000 sf in
205 N. Michigan Ave. from 225 N. Michigan Ave., where it 102 Melrich Rd.
has been a subtenant since 1999. MB Real Estate negotiated the deal on behalf of the landlord, Loeb Partners Realty LLC. Studley advised Virchow Krause…Ada’s Natural
and Organic Foods Supermarkets has taken 20,000 sf at the Collection at Vanderbilt, a 225,000-sf upscale shopping
center in Naples, FL owned by Woolbright Development. The retailer plans to open late this year…Monday Properties
has completed two five-year deals at its Twin Towers complex in Rosslyn, VA. The US General Services Administration
leased 19,000 sf at 1000 Wilson Blvd., and Northrop Grumman took 17,665 sf at 1101 Wilson Blvd. CB Richard Ellis
repped Northrop Grumman, the GSA had an in-house advisor and Grubb & Ellis acted for Monday Properties in the deals.
After paying $73 million, LBA Realty Fund III-Co. IX
LLC now owns the four-building McShane Westside
Business Park in Tolleson, AZ. Recently developed by a
joint venture of McShane Construction and MetLife,
the project features 1. 1 million sf of industrial space.
Cushman & Wakefield and Lee & Associates
Arizona Inc. brokered the deal…A 104,160-sf freestanding retail property fully occupied by Fry’s
Electronics in Concord, CA has flipped into the portfolio
of Fidelity. Faris Lee Investments represented both
the buyer and the seller, SDL Concord Partners LP, in
the $16.5-million deal…An affiliate of Harbor Group
International has acquired the 260-unit Waterman’s
Crossing Apartments in Newport News, VA from
Sentinel Real Estate Corp. for $29.7 million. CB
Richard Ellis brokered the transaction. The new owners
plan a $1-million upgrade to the property…Gateway
Commercial/Cushman & Wakefield teamed up to represent the unnamed seller of three office buildings in
the Metro St. Louis area. For a total of $81 million, the
174,004-sf Bemiston Tower in Clayton; the 232,521-sf
Magellan Plaza in Maryland Heights; and the 66,462-sf
Black’s Ridge in Chesterfield changed hands…Making
entrances for each building. Sahn says
Contra Costa County can begin moving into
the space once work is finished in August.
The three-story Ellinwood Corporate
Center sits on 9. 5 acres around a large lake
and is part of a master-planned community
that includes restaurants, retail and housing,
hiking trails, parks and JFK University.
According to Real Capital Analytics, DJM
bought the vacant campus from American
Financial Realty Trust for $18.6 million in
Sahn explains the local office market was
incredibly soft at the time, so there wasn’t a
tremendous amount of tenant demand for the
space. The complex was not being marketed
since the former owner had planned to sell the
property to a developer that would tear it
down and build a residential project. The
change-of-use plans were not approved and
DJM acquired the property shortly after the
original purchase contract expired, he says.
“These buildings were very attractive
because they would allow us to lease the
space immediately while rents in the area were
growing, and they were priced very reasonably,” Sahn explains.—Jennifer McCandless
Motel 6, Virginia Beach
Ellinwood Corporate Center
PARKWAY CLOSES OUT FUND
WITH $100M WINDY CITY BUY
Chicago—Sometimes a deal is so compelling that an investor will go beyond its
spending limit. That was the case with
Parkway Properties Inc. when it had the
chance to take hold of the 600,000-sf
Citicorp Plaza in the city’s O’Hare submarket.
The acquisition was made on behalf of
the Jackson, MS-based REIT’s Parkway
Properties Office Fund LP, a $500-million
investment vehicle it co-sponsors with the
Ohio Public Employees Retirement System.
Under its arrangement with the pension
fund, no more than $80 million can be
spent on a single investment, according to
Jim Ingram, the REIT’s chief investment officer. Further, Parkway normally invests 25%
in the fund’s purchases; however, for
Citicorp Plaza it stretched its ownership
stake to 40%. A total of $100 million was
paid for the complex, which includes three
11-story, interconnected class A office
buildings on 11. 5 acres.
“We like Chicago and had not made an
investment in the O’Hare submarket. We
its first corporate acquisition in eight years, Accor North
America has snapped up a 131-key lodging property in
Virginia Beach for an undisclosed price. Formerly owned
by Virginia Beach Hotel LLC, the property now operates under the Motel 6 flag…Lap Tang Development
Co. has taken ownership of Serra Center, a mixed-use
complex in Milpitas, CA. Grubb & Ellis advised seller
Donovan Trust, which netted $43.9 million in the trade.
AMB Commercial Brokerage spoke for the buyer,
which plans to raze part of the 16.4-acre site and develop some 375 luxury condos and 135,000 sf of retail.
The total build-out could cost as much as $200 mil-lion…An investment sales team from Cassidy &
Pinkard Colliers has arranged the sale of the
104,782-sf Woodmont Place on behalf of Brookfield
Real Estate Opportunity Fund. Purchaser Carr
Properties paid $24 million, or $230 a sf, for the
Rockville, MD asset…Four warehouse buildings totaling 1. 9 million sf in the Windham Lakes Southwest
Business Park in Romeoville, IL are now part of the
holdings of Heitman America Real Estate Trust.
Panattoni Development Co. developed the properties,
of which two are fully leased to Sears Holdings,
Kimberly-Clark and Dann Dee Display Fixtures, a division of Leggett & Platt. No sale price was given.