In this week's issue:
- Build it to destroy it in South Carolina.
- Bridgepoint Education takes 10 floors at new office tower.
- MillerCoors completes Chicago HQs lease.
- Plus, we give you expansion news of: AOL, Barclays, Cooper Tire & Rubber, Eye Care Centers of America, General Technologies, KBC Advanced Technologies, Perot Systems, Qualcomm, Range Resource, RedPrairie, SelectHealth, Smith & Nephew, Toyota, United Natural Foods and others.
Build It To Destroy It
The Institute for Business & Home Safety is planning to develop a new campus in Chester, SC, where it can subject houses to all kinds of natural catastrophes.
IBHS, with funding from major insurance companies, will build The Insurance Center for Building Safety Research on 90 acres it purchased along South Carolina Highway 99 from Chester County.
The primary purpose of this $27 million multi-peril research facility -- funded entirely by insurers and reinsurers -- is to identify effective methods of minimizing risk and loss to homes, businesses, and communities resulting from natural disasters. The research center will have the ability to subject 1,800-square-foot, two-story homes and light commercial construction to a variety of hazards, including realistic Category 3 hurricanes, wind-blown fire (mimicking wildfire embers), and hailstorms.
A two-track research program will allow IBHS to address catastrophes, as well as more isolated, but expensive, maintenance-related issues like plumbing system failure and interior fires. The research findings will be used in aggressive consumer education and advocacy campaigns, and to supply vital data for developing public policies in areas such as building codes and land use.
The IBHS organization evaluated many sites in several states but chose this location because it fulfilled key search criteria, including: a location more than 100 miles from the coast with a very mild climate to accommodate year-round testing and to preserve the "inventory" of structures kept on the campus; more than 35 acres for a campus encompassing a laboratory, an office building, and a "street" on which to park structures between tests; no height restrictions precluding structures 80 feet tall; sufficient natural noise reduction features or land upon which artificial noise barriers could be constructed; a location directly adjacent to a 100kV power transmission line carrying electricity generated by renewable resources, and able to house a transformer/sub-station; and, a site close to other centers of excellence, academic institutions and relevant business sectors, and relatively close to a major interstate with airport access.
Odell Associates Inc. in Charlotte, NC, has been chosen to lead the architectural/engineering design team for the state-of-the-art facility, which should be complete in 2010.
IBHS has been a leader in using building science to develop real-world approaches to reduce the risks posed by natural disasters and other perils. Events in recent years, including tornadoes, hurricanes and wildfires, have given IBHS researchers opportunities for field work, during which they have learned much about how to better engineer structures against certain risks. There remain, however, knowledge gaps that can be filled only with testing in controlled environments, which the new research center will provide.
Education Provider Takes 10 Floors at New Office Tower
By: Adrian Robles
Following up on a 300,000-square-foot lease earlier this year, Bridgepoint Education leased a little more than 248,000 square feet at Sunroad Centrum, an 11-story office tower in San Diego, CA, delivered in April by local developer Sunroad Enterprises.
The independent higher education provider signed an 11-year deal to occupy all but one floor in the tower, which has a total of 273,764 square feet. The property is at 8620 Spectrum Center Blvd. in the Kearny Mesa area, and is LEED pre-certified.
Bridgepoint will occupy about 150,000 square feet in March, taking the balance of space in January 2010.
Chris Hobson of Grubb & Ellis|BRE Commercial, Bridgepoint's tenant representative for the past seven years, handled the deal for the education provider. Mark Wayne, Steven Wolf and Eric Vann of Cushman & Wakefield represented the landlord.
In February, Bridgepoint leased about 290,000 square feet in San Diego from Kilroy Realty. It said at that time it planned to add 600 new employees in San Diego, where it is based.
MillerCoors Completes Chicago HQs Lease
By: Adrian Robles
The newly formed MillerCoors LLC, a merger between SABMiller and Molson Coors Brewing Co., signed a 15-year, 129,119-square-foot lease in the heart of the West Loop at 250 S. Wacker in Chicago, IL.
250 S. Wacker underwent numerous renovations including a completely retrofitted electrical system, new elevators and cabs and soaring atrium lobby.
With the lease, MillerCoors will be the largest tenant in the 246,840-square-foot building housing nearly 400 employees on eight floors. Senior executives, marketing, human resources, legal, finance, IT and communications divisions will be housed in the office building.
Chicago-based architecture and interior design firm VOA was selected for the interior design and construction of the headquarters. The project has a June 2009 completion date.
John Dempsey, senior vice president at CB Richard Ellis, represented AEW Capital Management LP, building ownership. Mike Sessa, Craig McKesson, John Howland and Dan Maslauski of Jones Lang LaSalle represented the tenant.
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Expansions & Relocations
ACE Logistics signed a lease with Palin Development for 102,000 square feet for two adjacent industrial properties at 545 and 555 Dowd Ave. in Elizabeth, NJ. ACE is moving from another location in the area and will occupy both buildings in their entirety. Mark Tannen of CB Richard Ellis represented the tenant. Gregory Mechaber represented the landlord, in-house. (By: Danielle Cook)
AOL signed a deal with Vornado Realty Trust to expand its headquarters by 76,000 square feet at 770 Broadway in New York. The 15-year deal will see AOL taking over the entire sixth floor, bringing the Internet giant's grand total to 228,138 square feet. Vornado recently completed a $35 million renovation to the building. Martin Horner of Jones Lang LaSalle represented AOL. Glen Weiss and Ron LoRusso represented Vornado, in-house. (By: Timothy Houseal)
Barclays subleased 60,463 square feet from Metlife at One Metlife Plaza in New York. The global financial services provider will occupy for the 10th-12th floors through the summer of 2023. Paul Glickman, Josh Kuriloff and Diana Biasotti of Cushman & Wakefield represented Metlife, along with Randy Abend and Lloyd Desatnick of Jones Lang LaSalle. Lewis Miller with CB Richard Ellis represented Barclays. (By: Timothy Houseal)
Central Health MSO Inc. purchased the office building at 1540 S. Bridge Gate Drive in Diamond Bar, CA, from Kerdman Enterprises GP for $12.39 million or $239 per square foot. The buyer plans to move the company into the building in the fourth quarter.. Constructed in 1987, the property boasts a 51,840-square-foot office building on nearly 5.3 acres. Taylor Ing of CB Richard Ellis represented the seller. Linda Sardjono of Coldwell Banker New Century represented the buyer. (By: Melissa Sicola)
Continental Warehouse has expanded its occupancy in a Sacramento, CA, warehouse by more than 100,000 square feet. The deal brings the tenant's total occupancy at 8670 Younger Creek Drive to 159,201 square feet. Scott Cable and Andrew Kilpatrick of Cable & Kilpatrick Commercial Real Estate represented the landlord, BGK LLC. Peter Winterling of Cornish & Carey Commercial represented the tenant. (By: Lorna Dorfman)
Cooper Tire & Rubber Co. leased 362,000 square feet at AMB I-78 Distribution Center, an AMB Property Corp.' development project in the Allentown/Lehigh Valley submarket in eastern Pennsylvania.
Eye Care Centers of America, an optical retailer with more than 400 stores, signed a 108,750-square-foot lease in the industrial facility at 6601 Guada Coma Drive in Schertz, TX. Charles Walters of Cavender & Hill Properties Inc. represented the tenant and the landlord, Verde Corporate Realty Services. (By: Susie Hernandez)
ForeRunner Corp. agreed to lease the top two floors at 7125 W. Jefferson Ave. in Lakewood, CO, for seven years. The total consideration for the 50,781-square-foot lease was in excess of $6 million. The engineering firm will move from its current West Point location, which is down the street from its new space at the Linpro Center. Mike Rooks and Lindsay Brown of Jones Lang LaSalle, along with Sam DePizzol of CB Richard Ellis, represented the tenant. Justin Rayburn and Dave Buck of CB Richard Ellis represented the landlord, Miref Linpro Center. (By: Randy Evans)
General Technologies Inc. (GTI) leased 27,746 square feet of space in Opus North's Oakview Corporate Park, an industrial, multi-tenant development on Higgins Road just west of Randall Road and near the intersection of Interstate 90 and Randall Road in West Dundee, IL. Pete Roberson of CB Richard Ellis brokered the five-year lease on behalf of GTI. Noel Liston of Darwin Realty brokered the lease on behalf of the landlord, Opus North.
Greenwich Hospital subleased 35,000 square feet from Cadbury Schweppes at 900 King St. in Rye Brook, NY, increasing its occupancy there to 70,000 square feet. It signed a 10-year deal and will use the new space for administrative offices. The three-story buildings totals more than 200,000 square feet and is owned by Brickman Associates. Kevin Foley and Larry Ruggieri of Cushman & Wakefield represented Cadbury Schweppes in the lease. Christopher O'Callaghan from Cushman & Wakefield represented Greenwich Hospital. (By: Brooke Koch)
Histogen Inc., a regenerative medicine company, leased 27,712 square feet at the Sycamore Creek Research Park in San Diego, CA. The eight-year deal is valued at $9.1 million. The two-story flex building is at 10655 Sorrento Valley Road in the Sorrento Valley area. Histogen will occupy the entire property. Dave Odmark of Grubb & Ellis|BRE Commercial represented Histogen as well as the landlord, Dansk Investment Group. (By: Scott Stephenson)
Horace Mann Insurance Services signed a lease for 41,800 square feet on the second floor of the Perimeter One office building in Morrisville, NC, at 3005 Carrington Mill Blvd. The insurance company will take occupancy in December. Hooker Manning handled the deal in-house for the landlord and developer, Duke Realty. (By: Claire Meyer)
KBC Advanced Technologies Inc. signed a 10-year lease agreement with Opus West Corp. for occupancy of nearly 30,000 square feet of office space on the sixth floor at Energy Crossing I in Houston, TX. KBC is the first tenant to lease space in Energy Crossing I, taking nearly three-fourths of the top floor at the new 240,000-square-foot project in Houston's Energy Corridor. Energy Crossing I will be completed in January 2009 and ready for tenant occupancy in February 2009. John Pruitt and Dena Wren of CB Richard Ellis represented opus West. Anthony Squillante of Jackson Cooksey served as the tenant's broker.
Liquidity Services, a company that sells surplus U.S. military materials, leased 325,000 square feet from Big Industrial LLC at the Will Rogers Business Park in Oklahoma City at 7501 S.W. 29th St. Todd Mendon represented the landlord, in-house. Bob Puckett with Price Edwards & Co. represented the tenant. (By: Tioni Steele)
Matrix Services leased 26,885 square feet from The Buccini/Pollin Group at Baldwin Tower in Eddystone, PA. Occupancy is scheduled for February. Brendan Kelley represented the landlord, in-house. Scott Miller of CB Richard Ellis represented the tenant. (By: Tanika Belfield-Martin)
Maytec Inc. of Dachau, Germany, leased 50,123 square feet in Opus North's Oakview Corporate Park, an industrial, multi-tenant development in West Dundee, IL. Maytec will occupy approximately one-third of the 154,475-square-foot building. The company will move its U.S. distribution headquarters to the corporate park located on Higgins Road just west of Randall Road and near the intersection of Interstate 90 and Randall Road in December. Noel Liston of Darwin Realty brokered the lease on behalf of the landlord, Opus North and Maytec.
Perot Systems Corp. launched construction of its new office facility in Lincoln, NE, at the University of Nebraska Technology Park. The new facility, developed by KDC, is one of the largest private construction projects seeking LEED certification in the state. The majority of Perot Systems current Lincoln workforce, which totals approximately 1,000 associates, will be housed in the new facility. Construction of the project is expected to be complete by the third quarter of 2009 and will make Lincoln one of Perot Systems' largest U.S. employment locations. Perot Systems plans to begin hiring additional employees for up to 150 new high tech positions in Lincoln and recently held an open house as well as participated in several area job fairs.
Qualcomm Inc. purchased 4.1 acres at 5530 Morehouse Drive in San Diego, CA, for $11.75 million, or more than $2.8 million per acre, from a group that included Robert Lankford of Lankford & Associates. Qualcomm plans to construct a 300,000-square-foot facility for its own use at the site, which is vacant and rough-graded. Qualcomm recently acquired the three-building Pacific Center office complex in San Diego for $172.3 million, in a deal that also included development parcels. Tom Mercer of Colliers International represented the seller. (By: Andrew Seabourne)
Range Resource Corp. leased an additional 32,220 square feet of office space at Two City Place in Fort Worth, TX. The company currently occupies 80,500 square feet on floors nine through 14 at 100 Throckmorton St. and will take the seventh and eight floors. The lease will be co-terminus with the lease on the current occupancy, which has about 8.5 years left. Jack Huff and Kyle Poulson of NAI Huff Partners represented Range Resource. The landlord, PNL Cos., in Dallas handled the deal in-house. (By: Jason Kuyper)
RedPrairie Corp. intends to become an integral partner in the development of a Delafield, WI, technology park, in partnership with RP Technology Development Group LLC. RedPrairie's current Waukesha leasing arrangement are nearing conclusion. Details of the planned development, to be located on the south side of I-94 and County Highway C in Waukesha County, will be determined in the coming weeks. The building is expected to provide approximately 120,000 square feet of office space and will be the largest of the four Phase I buildings. Occupancy is expected to begin in the fall of 2010.
SelectHealth plans to build a new headquarters at 5383 S. Green St. in Murray, UT. The new building will measure 150,143 square feet over four stories. Groundbreaking and foundation work are slated to begin in the next 30 days, and delivery is slated for the first quarter of 2010. SelectHealth, an affiliate of Intermountain Health Care (IHC), will move to the new building from 4646 W. Lake Park Blvd. in West Valley City, although it will maintain a presence there, according to Tom Uriona, director of real estate for IHC. (By: Stephen Basham)
Smith & Nephew, a London-based medical device developer, signed a 10-year lease for 26,588 square feet on the first floor of 4721 Emperor Blvd in Durham, NC. The firm will take occupancy in December 2008. Clay Stober of Tri Properties represented the landlord in-house, while Robin Anders of NAI Carolantic Realty represented the tenant. (By: Bryan McCaslin)
Toyota signed a 10-year lease with Boston Properties for 30,511 square feet at Citigroup Center in New York. The auto manufacturer will take over the entire 49th floor, with a move-in set for third quarter, 2009. Frank Doyle, Cynthia Wasserberger and David Kleiner with Jones Lang LaSalle represented both parties in the transaction. (By: Timothy Houseal)
United Natural Foods Inc. entered into an office lease with Alco Cityside Federal LLC for headquarters space in the American Locomotive Building at 317 Iron Horse Way in Providence, RI. The lease has an initial term of 10 years, with options to renew for two consecutive five-year periods. United Natural is required to pay base rent of $62,784.38 per month for the first 18 months of the initial term, increasing to a maximum of $105,120.00 per month for the final 36 months of the initial term.