News of corporate expansions, relocations, extensions, closures, layoffs, lease cancellations and mergers has been consolidated into Lease Up/Lease Down. Look to Lease Up/Lease Down every week for valuable information that can be used as a source for business leads.
Expansions, Relocations & Extensions
Broadridge Renews for 373,000 SF in Jersey, Manhattan
After weighing its options, Broadridge Financial Solutions is staying put in the Tri-State region, renewing 373,000 square feet in New York and New Jersey office leases.
The Long Island-based brokerage firm has extended its stay at 2 Journal Square in Jersey City. Broadridge will fully occupy the 320,000-square-foot office building for the next seven years.
Located above the Journal Square PATH terminal, the nine-story building completed construction in 1987. Broadridge originally took occupancy shortly thereafter. Hartz Mountain Industries, Panepinto Properties and Garden State Development own the property.
Michael T. Cohen and Colton Brown with FirstService Williams, along with David Pennetta of Oxford & Simpson Realty handled negotiations for Broadridge.
"With the reasonable terms agreed to by Hartz and being able to avoid the disruptions and loss of productivity inherent in any large-scale corporate relocation, remaining in its current location was the best decision for Broadridge," said Cohen. He also noted that Hartz offered several up-front inducements such as free rent and a construction allowance.
The lease ranks second in terms of size for Class A office deals in the New York and Northern New Jersey markets this year. It trails only
DTCC's 415,000-square-foot lease at the Newport Office Center, also in Jersey City.
A bit less flashy is the 53,000-square-foot renewal Broadridge inked at 1 Park Ave. in Manhattan. Murray Hill Properties signed the firm for three more years.
Built in 1925, the 20-story, 913,000-square-foot office tower is a few blocks from the Empire State Building. Asking rents in the building start at $35 per square foot, according to CoStar information.
Robert Tunis with FirstService Williams and David Pennetta with Oxford & Simpson Realty represented Broadridge. Audrey Novoa and Roxana Girand represented Murray Hill Properties, in-house.
Mintz Levin Inks 85,000-SF Renewal at Chrysler Center
A major Manhattan law firm is extending its stay at the Chrysler Center through 2022.
Mintz Levin Cohn Ferris Glovsky and Popeo PC has renewed its 85,000-square-foot office lease at 666 Third Ave. for 14 years. The law firm, which began with six lawyers in 2000, has grown to 130-person staff that includes 76 attorneys. Mintz Levin's real estate footprint has also grown significantly over time; the law firm's original lease at 666 Third totaled a mere 34,000 square feet.
The 32-story, 666,356-square-foot skyscraper was built in 1952, adjacent to the Chrysler Building. Additional tenants include Grant Thornton, American Securities Capital Partners and Simpson Thacher.
Mintz Levin's new lease includes two options for renewal as well as an expansion option. Rent was not disclosed, but Class A office space in the Grand Central area averages about $55 to $60 per square foot, according to CoStar information.
Mark Weiss with Newmark Knight Frank represented Mintz Levin. Greg Conen with Tishman Speyer represented the landlord, in-house.
"Once the economic framework was set on this transaction, the real estate committee of Mintz Levin, Tishman Speyer and Newmark Knight Frank worked collaboratively in solving the logistical items necessary to accommodate a re-stack in a full building," said Weiss.
Premier Moving HQ to Charlotte
Premier Inc. is moving its corporate headquarters to Charlotte, NC, signing a 15-year lease at the Boyle Building in the Ballantyne Corporate Park. Occupancy is slated for February 2011.
A leading healthcare alliance of hospitals and other medical providers, Premier is taking the entire 10-story, 262,000-square-foot office building at 13034 Ballantyne Corporate Place. Bissell Development delivered the Class A property at the end of last year.
Blair Bryan, Jeff Harper and Eric Parris represented Premier in the transaction. Barry Fabyan, Charley Leavitt, Jenny Dykstra and Edward Curran with Bissell Cos. represented the landlord, in-house.
Premier is relocating from an 18,390-square-foot space at 12255 El Camino Real in San Diego. The organization already has quite a presence in Charlotte, occupying the 175,000-square-foot Corporate Center One in the Lakepointe Corporate Center. Premier also has offices in Philadelphia and Washington, D.C.
Investing $17.7 million, Premier plans to create approximately 300 jobs at the new location over a five-year period, while keeping the 750 employees it already has in the region. If it does so, the healthcare alliance could be eligible for about $4.1 million in incentives from state officials.
According to a statement by the office of North Carolina Governor Bev Perdue, the proposed jobs would have an average salary of $69,400 per year, not including benefits. That is about $20,000 more than the Mecklenburg County annual average.
Premier's lease ends a 21-month search for a new location that would meet its space requirements and reaffirm its commitment to Charlotte. The organization's predecessor, SunHealth, was founded in Charlotte in 1969. The current Premier alliance was formed in 1996.
"Healthcare is large and growing as an economic force here in Charlotte," said Michael C. Tarwater, CEO of the Carolinas HealthCare System, Charlotte’s largest employer and a member/owner of Premier. "Premier is a key partner in this growth, and their presence here is a great feather in the cap of our entire region."
About 90 North Carolina hospitals are members of the alliance, including Carolinas HealthCare System and Gaston Memorial Hospital, both in Charlotte. Premier has helped these hospitals to save more than $164 million since 2004. Additionally, 19 North Carolina hospitals have received $3 million for improving patient care through a program run by Premier and Medicare.
"Considering our existing presence and past history in the area, it is a natural fit for Premier to be headquartered in Charlotte," said Susan DeVore, president and CEO of Premier.
5N Plus Inc., a Canadian company that produces high-purity metals and compounds for electronic applications, leased the entire Madcap III building in De Forest, WI. Occupancy is scheduled for November. The 60,536-square-foot warehouse at 6474 Blanchar's Crossing was constructed in 2007 in the Dane East Industrial submarket. It is part of the North Towne Corporate Park. Blake George of Lee & Associates represented the landlord and the tenant in the deal. (By: Jessica Wheeler)
American Red Cross leased 220,800 square feet at Fairgrounds Distribution Center at 4401-4491 Carolina Ave. in Richmond, VA. It took occupancy last month. The 317,400-square-foot industrial building is in the Laburnum/Rte 360 Industrial Submarket. ARC occupies buildings J and K, which were constructed in 1988. Brian Felton was the in-house representative for the landlord, Liberty Property Trust. Marc Allocca of CB Richard Ellis represented ARC. (By: Leah Pyle)
Benson Industries leased the 52,244-square-foot industrial facility at 4444 N.W. Yeon Ave. in Portland. The warehouse was built in 1970 in the Guilds Lake Industrial submarket. It has seven loading docks and one drive-in. John Fettig and Miles Von Bergen of Capacity Commercial Group negotiated the deal for the landlord, Summit Properties Inc. Steve Dodds of NAI Norris Briggs & Simpson and Tony Reser of GVA Kidder Mathews represented Benson Industries. (By: Joseph Montano)
Cache Creek Casino leased the 33,400 square feet of industrial space at 440 N. Pioneer Road in Woodland, CA, for three years. The facility was built in 1991 in the David/Woodland Industrial submarket of Sacramento. Zac Sweet of Buzz Oates Cos. represented the landlord in-house and the tenant. (By: Lorna Dorfman)
Columbia Manufacturing Corp. leased 110,000 square feet at 1639 W. Rosecrans Ave. in Gardena, CA. The five-year transaction is valued at approximately $2.5 million. The screen and security door manufacturing company will utilize the property for distribution of its goods. Constructed in 1969, the facility consists of two industrial buildings of approximately 100,000 square feet and 10,000 square feet. Matt Stringfellow and Courtney Bell of The Klabin Co. represented Columbia. Jeff Morgan, John Schumacher and Bret Quinlan of CB Richard Ellis handled negotiations for the landlord, Pacific Prime Properties. (By: Melissa Sicola)
Dotcom Distribution is renewing and expanding at 300 Nixon Lane in Edison, NJ. The distribution company, which currently occupies 238,000 square feet in the facility, is increasing its presence to more than 400,000 square feet in March 2010. ProLogis developed the 800,000-square-foot class warehouse building in 1999 on about 90 acres. Brian Knowles and Jon Compitello of Jones Lang LaSalle represented Dotcom Distribution. Prologis was self-represented. (By: Deanna Paul)
FedEx Ground Package Systems has signed an early renewal for its 45,844-square-foot lease in Crossroads Industrial Center for an additional 14 months. The 98,760-square-foot warehouse at 4625-4641 Crossroads Industrial Drive was built in 2001 in the Earth City Industrial submarket. Dan Dokovic of Sansone Group represented the landlord, while FedEx was represented in-house. (By: Kimberly Schuster)
Furniture Brands Inc. leased 97,150 square feet of industrial space at Point North One in Houston. The home furnishings distributor plans to take occupancy in early 2010. The 158,940-square-foot warehouse building at 8210 Humble Westfield Road was constructed in 2008 and is the first phase of Point North Cargo Park. Cory Driskill of Duke Realty represented the landlord. Furniture Brands was represented in-house. (By:Meghan Drennan)
FXDirectDealer LLC leased 40,717 square feet at 7 World Trade Center in New York. The foreign exchange brokerage company signed a sublease through November 2022. The 52-story, 1.7-million-square-foot office tower was built in 2006 in the World Trade Center submarket. FXDirectDealer is relocating from 75 Park Place. Joseph Harkins and Barry Lewen of Grubb & Ellis represented the subtenant. Hank Walker, also with Grubb & Ellis represented the sublandlord. (By: Christina McKinnon)
Kaplan University, one of the largest online universities, signed a 12-year sublease for about one-third of the office building at 1601 S.W. 80th Terrace in Plantation, FL. Sources familiar with the deal say that Kaplan is negotiating a lease for the remainder of the building. Located in the Jacaranda Park of Commerce, the four-story, 124,000-square-foot office building delivered in 1994. Kaplan subleased the space from Broadspire Services and has already begun moving in, according to a contact at Kaplan. Jarred Goodstein and Jay Adams with CB Richard Ellis represented Broadspire Services in the transaction. (By: Arthur Evans)
Madden Communications renewed its 197,000-square-foot lease at 355 Longview Drive in Bloomingdale, IL. TA Associates Realty signed the in-store marketing and point-of-purchase (POP) company to a five-year term. The 271,680-square-foot warehouse building delivered in 1999 in the Klein Creek Industrial Park. The facility features 30 loading docks and a 30-foot clear height. Jason West and Sean Henrick of Cushman & Wakefield represented Madden.
MyShape Inc., a women's online clothing retailer, signed a 35,353-square-foot lease for two years with Crown Realty & Development to relocate its corporate headquarters and fulfillment center from Pasadena. The retailer will occupy the entire building. The 35,353-square-foot office building is at 210 W. Lexington Drive. It was built in 1951. Ray Howden and Matthew Hargrove of Cushman & Wakefield represented Crown Realty & Development. Matthew Brainard of Studley and Howard Reback of Bailes & Associates represented MyShape. (By: Arlene Reyes)
Schwarz Paper Source, a retail mailing and parcel center, renewed its 388,299-square-foot warehouse lease at 3600 Progress Drive in Bensalem, PA, for two years. The 562,560-square-foot facility was built in 1971 on 40 acres of land. It is in the Bucks Industrial submarket. Michael Borski Sr. of The Flynn Co. represented the landlord, TA Associates Realty. (By: Latricia Miller)
Sony Music extended its lease of the industrial building at 430 Gibraltar Drive in Bolingbrook, IL. The music giant, which uses the facility as a distribution center, signed for another five years. The 281,500-square-foot building was built in 2000 as part of the Corporate Crossing Business Park, near the crossroads of I-55 and I-355. Jason West and Sean Henrick of Cushman & Wakefield represented Sony. Aileen Sandstedt with GVA Chicago represented the landlord, Sun Life Assurance Co. of Canada.
Tria Beauty Inc. leased a total of 38,801 square feet at the Dublin Corporate Center Building Four in Dublin, CA. The laser hair removal company signed a 63-month deal. Built in 2001, the four-story office building at 4160 Dublin Blvd. measures 139,285 square feet. Tria will occupy 6,633 square feet on the ground floor and 32,168 square feet on the second floor as its corporate headquarters on December 1. Chip Wiser and Mark Sweeney of Cornish & Carey represented the tenant. Brian Lagomarsino and Ted Helgans of Colliers International represented the landlord, Tishman Speyer. (By: Linawati Collier)
The University of Phoenix leased 111,349 square feet at 1717 W. 16th St. in Tempe, AZ. The educational institution is taking occupancy in November. The 111,349-square-foot flex building was built in 1978 on 8.8 acres and was renovated in 2008. The facility has one drive-in bay. Corey Hawley, Jerry Roberts and Jim Fijan of CB Richard Ellis represented the landlord, Greenstreet Real Estate Partners LP. Rick Lee with Lee & Associates represented the tenant. (By: Emily Baker)
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Closures & Layoffs
Sun Microsystems is laying off 3,000 employees worldwide as part of a new restructuring plan, according to a filing with the SEC. The software developer said that the layoffs are the result of a delay in the closing of Oracle's $7.4 billion acquisition of the company. The U.S. government approved the merger in August, but the European Commission has stalled the deal over concerns about the partnership having a potential monopoly on the database market. However, it has been widely speculated that even further job cuts would occur if Oracle completes the acquisition. Sun did not disclose specific locations where layoffs would take place but said that they are to occur over the next 12 months. The company expects to incur one-time costs of $75 million and $125 million over the next two quarters of the fiscal year, mostly from severance costs.
Caterpillar said Monday that it is permanently severing ties with about 2,500 employees, citing a continued decrease in product demand. Those employees are part of a group of about 22,000 workers that the construction equipment manufacturer temporarily laid off early this year. Caterpillar has gradually been returning some of those employees to work, and projected that about 550 workers would be reinstated by the end of 2010. The company is offering a severance package to the 2,500 workers that have been permanently cut. Caterpillar said that a breakdown of impacted employees by location would not be provided.
| Company | Address | Closure or Layoff | # Affected | Impact Date | | Sun Microsystems | Worldwide | layoff | 3,000 | Next 12 months | | Caterpillar | Nationwide | layoff | 2,500 | unknown | | New York Times | 620 Eighth Ave, New York, NY | layoff | 100 | 12/31/2009 | | Direct Energy | 1701 N Plano Road, Richardson, TX | closure | 85 | 12/31/2009 | | Zimbrick Saturn of Madison | 310 W Beltline Hwy, Madison, WI | closure | 35 | 12/26/2009 - 3/1/2010 | | North American Enclosures | 65 & 85 Jetson Lake, Central Islip, NY | layoff | 30 | 1/15/2010 | | Alstom Transportation Inc. | 1 Transit Drive & 1 Shamut Drive, Hornell, NY | layoff | 502 | 1/18/2010 - 6/30/2010 | | Comcast | 3055 Comcast Pl, Livermore, CA | layoff | 38 | 1/18/2010 | | New United Motor Manufacturing | 45500 Fremont Blvd, Fremont, CA | closure | 3,764 | 4/1/2010 | | USS-Posco | 900 Overidge Rd, Pittsburg, CA | layoff | 50 | 1/2/2010 | | Bank of America | 101 S Marengo Ave, Pasadena, CA | layoff | 174 | 1/31/2010 | | Assurant Specialty Property | 14511 Myford Rd, Tustin, CA | closure | 80 | 1/4/2010-2/28/2010 | | Assurant Specialty Property | 333 S Anita Dr, Orange, CA | closure | 73 | 1/8/2010 - 12/31/2010 | | Assurant Specialty Property | 2677 N Main St, Santa Ana, CA | closure | 103 | 1/4/2010 - 6/30/2010 | | Kmart Corp., Store #4191 | 902 W Sepulveda, Harbor City, CA | closure | 57 | 1/17/2010 | | Lennox Hearth Products, Inc. | 1110 W Taft Ave, Orange, CA | layoff | 71 | 1/8/2010 - 12/31/2010 | | Arrow Electronics, Inc. | 1251 S Rockefeller Ave, Ontario, CA | layoff | 27 | 1/13/2010 - 3/17/2010 | | Lockheed Martin | 3100-3130 Zanker St, San Jose, CA | layoff | 36 | 03/26/2010 | | Rockwell Collins | 2701 Orchard Pky, San Jose, CA | closure | 192 | 1/29/2010 - 3/26/2010 | | Ethicon Endo-Surgery, Inc. | 101 Saginaw Dr, Redwood City, CA | closure | 27 | 2/1/2010 - 4/1/2010 | | Schenker Inc. | 440 & 450 Exchange, Irvine, CA | layoff | 18 | 1/1/2010 | | Standard Chartered Bank | 1111 Brickell Ave, Miami, FL
| layoff | 72 | 12/31/2009 | | SEARS Holdings | 1801 Palm Beach Lakes Blvd, West Palm Beach, FL | closure | 20 | 1/17/2010 | | Bristol-Myers Squibb Co. | 2400 Lloyd Expressway, Evansville, IN | closure | 79 | 12/31/2009 | | Bristol-Myers Squibb Co. | 4601 Hwy 62 E, Mount Vernon, IN | layoff | 34 | 12/31/2009 | | Mohawk Flush Doors, subsidiary of Masonite Corp. | 402 N Sheridan St, South Bend, IN | closure | 73 | 12/23/2009 - 1/31/2010 | | GECOM Corp. | 1030 Hoover Blvd, Frankfort, KY | layoff | 160 | 12/21/2009 | | Miller Bros. Coal, LLC | 1801 Watergap Rd, Prestonburg, KY | layoff | 225 | 12/20/2009 | | New River Foundry | 1701 W Main St, Radford, VA | closure | 76 | 12/12/2009 | | Nautilus Inc. | 709 Powerhouse Rd, Independence, VA & 808 Valleyview Rd, Elk Creek, VA | closure | 173 | 12/31/2009 | | Mohawk Industries, Inc. | 901 S Delphine Ave, Waynesboro, VA | closure | 116 | 12/31/2009 |
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Lease Cancellations
Capmark Financial Group filed for Chapter 11 relief on October 25. The commercial real estate finance company is rejecting office leases at five properties that are currently vacant. The majority of these leases are small, except for a 95,290-square-foot space in Granville, OH. Capmark has determined that rejecting the leases should save the company $2.8 million annually through 2012. Capmark leases approximately 50 properties nationwide that cost the company $16 million in rent and other expenses over the past year.
Click here for more information on Capmark's bankruptcy reorganization.
Brocade Communications Systems has amended its lease at 6000 Nathan Lane in Plymouth, MN, extending the term through 2017 but also reducing the space. The data center technology developer, which occupies 81 percent of the 184,000-square-foot building, is shedding approximately 104,880 square feet. The original lease was set to expire in April 2010. According to an SEC filing, Brocade's rent will increase from $10.12 per square foot to $14.20 per square foot in May. Additionally, beginning on the 13th month of the lease, the annual rent is set to escalate 3 percent annually. Brocade may extend the lease term for two additional five-year periods at the fair market rental rate.
| Company | Address | Affected Parties | Comment | | Capmark Financial Group Inc. | 4009 Columbus Rd SW, Granville, OH | Prairie Enterprises Ltd. | 95,290 SF, exp. 9/1/12 | | Capmark Financial Group Inc. | 411 Borel Ave, Ste 320, San Mateo, CA | Interland | 8,401 SF, exp. 2/29/12 | | Capmark Financial Group Inc. | 800 Brickell Ave, Ste 1105, Miami, FL | Stiles Property Mgmt. | 1,845 SF, exp. 8/31/12 | | Capmark Financial Group Inc. | 12544 High Bluff Dr, San Diego, CA | Cushman & Wakefield of San Diego | 5,103 SF, exp. 7/31/12
| | Capmark Financial Group Inc. | Galleria Tower I, 2700 Post Oak Blvd, Ste 1450, Houston, TX
| CB Richard Ellis | 4,356 SF, exp. 10/31/09
| | Brocade Communications Systems | 6000 Nathan Ln, Plymouth, MN | Wells Mid-Horizon Value-Added Fund I, LLC | Reduced lease from 81% of the building (149,040 SF) to 24% (44,160 SF). Extended term from 4/30/2010 to 7/31/2017. | |
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