Arlington in the city’s exclusive Back Neighborhood, the property
consists of 10- and 20-story office buildings connected by a glass-enclosed galleria, a 33,200-sf retail component and a four-level
below-grade parking garage.
The seller, Liberty Mutual, was advised in the deal by Newmark
Knight Frank, which also procured the buyer. The brokerage
team included William Anderson and David Martel, executive
managing directors in NKF’s leasing group; and members of the
firm’s capital markets group: Robert Griffin, US head of capital
markets; Edward Maher, vice chairman; Matthew Pullen, executive managing director; Alex Foshay, senior managing director;
and James Tribble, director.
CHANGE OF PLANS LEADS TO SLB
In one of the largest single-asset acquisitions on the West Coast
last year, a million-sf asset traded before it was construction was even.
The $443-million deal also marked one of the first commercial
acquisitions for Five Point Holdings, which had gone public with an
IPO a few month prior to the August close of the acquisition.
Five Point Gateway is part of Five Point’s larger 72-acre Great
Park Neighborhoods master-planner community in Irvine, CA.
Broadcom Ltd. had originally bought the site from the developer
in 2015 with plans to build a two-million-sf world headquarters
designed by Gensler. Yet soon after construction started, it was
acquired by Avago, a Singapore-based semiconductor firm, and
moved its headquarters to San Jose.
Enter Fivepoint Communities, which decided to exercise its
buyback option on the office and R&D campus under a 20-year
agreement. Broadcom will lease back two of the project’s four
structures, totaling 640,944 sf or 64% of the campus, on a triple-net basis. Confirmed tenants for the remaining space are Lennar
Corp. and Five Point.
Acting on behalf of Broadcom was the CBRE team of executive vice presidents Kevin Bender and Todd Tydlaska, and
senior vice presidents Anthony Delorenzo and Jacob Stickel.
The campus features a generous amount of open park space
with attractive landscaping, best-in-class new construction and
An HFF team comprised of Lee Redmond, director; Kevin
Mackenzie, executive managing director and West Coast markets
leader; and associate Peter Thompson assisted Five Point in the
sales process and in arranging the financing for the deal. The latter component was While most lenders would be desitant to
bestow a large amount of funds to a property still under construction, HFF was able to obtain a five-year, floating-rate loan from
Starwood Property Trust for $339 million.
BIG APPLE’S ALWAYS GOOD FOR BIG DEALS
When discussing major office leases, the Big Apple is routinely
at the top of the activity list, and 2017 was no exception,
thanks in part to a couple of mega projects rising throughout
In May, BlackRock signed a deal for 850,000 sf on 15 floors of
50 Hudson Tower. The global asset manager will pay $1.25 billion the 20-year lease term at the project, to be developed by the
Related Co. and Oxford Properties. Some 3,300 BlackRock
employees are planned to start relocat-ing in 2023. Fried Frank
partners Robert Sorin and Michael Werner, along with the
firm’s Michael Hofer, advised the tenant in negotiations.
Fried Frank also served as legal counsel on another huge
relocation, this time Ernst & Young’s planned move to Brookfield
Property Partners’ One Manhattan West. The firm will occupy
600,000 sf on floors six through 22 of the 67-story building when
its Time Square lease expires in 2022. The legal team for the
20-year lease included partners Jonathan Mechanic and Valerie
Kelly, with Fried Frank’s Tess Rowley.
Elsewhere in the city, the union group of 1199 SEIU United
Healthcare Workers East took 580,000 sf of George Comfort &
Sons’ 498 Seventh Ave. under a consolidation. Music streaming
company Spotify signed on for 378,000 sf at the top 4 World
Trade Center, Silverstein Properties’ 72-story tower in Lower
And NewYork Presbyterian Hospital completed a $250-mil-
lion deal for the leasehold condo inter-est at 237 Park Ave. The
healthcare group had leased space at the 1.2-million-sf office
tower last year, but buying its 500,000-sf space as a condo from
landlord RXR Realty proved to be more beneficial financially.
Counseling the landlord in the transaction were Fried Frank
partners Meyer Last, Valerie Kelly and Jennifer Yashar, along
with team members Simon Elkharrat and Ben Co-hen.
TSA CHECKS IN TO NEW HEADQUARTERS
In October, the US General Services Administration awarded a
$316-million 15-year lease to Boston Properties for the relocation of the Transportation Security Administration to a site the
REIT owns in Springfield, VA. The new headquarters that will be
built will have up to 625,000 sf of of-fice space.
The transaction came about after the GSA announced its
interest in moving the TSA space back in 2015, and after its initial choice of Alexandria, VA fell through due to concerns over
a conflicting project. The move is expected to bring 3,000 jobs
to Fairfax County, not including the project’s resulting construction jobs, development of the project will bring. Cushman
& Wakefield’s Darian LeBlanc negotiated the deal for Boston
DATA FIRM SAVES PENNEY’S DIGS
A huge chunk of the vacant space at J.C. Penney’s former headquarters was taken off the market last year thanks to NTT Data
Services. The IT company will relocate up as many as 1,000
employ-ees to 232,000 sf at the Campus at Legacy West in Plano,
TX in phases through April 2018.
Sam Ware paid some $350 million for the 1.8-million-sf, 1990s-
era campus in 2016 and is in the process of making improvements
with the help of architect HKS. Colliers International’s John
Conger and David Quisenberry are the developer’s leasing
agents. The ESRP team of Steve Jarvie, Damian Rivera and
Darren Woodson acted for NTT Data in the deal.
Five Point Gateway