The Lease Up (Aug. 30 - Sept. 5): Harley-Davidson Trims List of Relocation Sites
A Weekly Column of Major Corporate Expansions, Relocations and Lease Extensions
September 1, 2009
Editor's Note: Expansions Relocations & Extensions is now The Lease Up. Here you will find news on companies that are bucking the trend of the recession by expanding, or taking advantage of the market by relocating. You will also find stories on businesses that are weathering the storm through consolidations and renewals. Look to The Lease Up every week for valuable information that can be used as a source for business leads.
In this week's issue:
Harley Davidson says no to Kansas City
Instinet signs a huge lease in Manhattan
Sherwin Williams signs a 1.2 million-square-foot renewal
The Defense Intelligence Agency renews in Arlington
The Department of Defense expands in Falls Church
Plus, we bring you news on: A.T. Kearney, Co-Op Logistics, Clark County Department of Family Services, Feldesman Tucker Liefer Fidell, iPayment, Labriola Baking Co., Menlo Worldwide Logistics, NFI Industries, Pandora Media, Premier Packaging Systems, Spherion and Wollenweber Trucking and Warehousing.
Harley-Davidson Trims List of Relocation Sites
Last week, CoStar reported that Harley-Davidson Motor Co. was looking at four Midwestern sites as it debates moving its York, PA, manufacturing plant. This week, the list was narrowed down to three.
Harley-Davidson said Monday that it has ruled out Kansas City, MO, for its possible relocation. Sites in Shelbyville, IN; Shelbyville, KY; and Murfreesboro, TN; are still in contention.
The decision comes as a bit of a surprise, since Harley-Davidson already owns a 330,000-square-foot facility in Kansas City with about 160 acres to build upon. However, recent layoffs at the plant earlier this year made the prospect of adding another 1,000 employees questionable.
Nathan Anderson, principal with Kansas-based Harbinger Property Group, estimates that although Kansas City undoubtedly offered generous incentives to the motorcycle manufacturer, the other three municipalities likely offered more since they don't currently have a Harley-Davidson plant.
Harley-Davidson still insists that it wants its 1.5 million-square-foot facility in York to remain open, if possible. The plant, which employs 2,300 people, has been deemed inefficient after a steep drop in profits.
Pennsylvania Governor Ed Rendell is working on a $15 million package to keep Harley Davidson in the Commonwealth.
Instinet Leases 100,000 SF in Manhattan
By Andrew Sears
Instinet Corp. signed a lease for 99,552 square feet at 1095 Avenue of the Americas in Manhattan. The global financial services firm is relocating from 3 Times Square.
The 41-story, 1.2 million-square-foot office tower was constructed in 1972 in the Penn Plaza/Garment submarket. The property was renovated in 2008.
Newmark Knight Frank represented the tenant. Zachary Freeman, Robert Alexander, Robert Stillman and Brian Hay of CB Richard Ellis represented the landlord, The Blackstone Group.
Sherwin-Williams Renews 1.2 Million-SF Lease
By Johanna Rollman
Sherwin-Williams Co., one of the largest paints and coatings makers in the world, renewed the lease for its 1.22 million-square-foot regional distribution center in Effingham, IL.
The facility is comprised of three buildings on 46 acres at 711 W. Wabash Ave. More than 300 people work at the property.
Thomas T. Lynn, president of Corporate Services with NAI Robert Lynn, represented Sherwin-Williams in the renewal. Jim Saviano of New Horizons Consultants represented the landlord.
Defense Intelligence Agency Renews Big Lease in Arlington
By Jesse Ruscheinsky
The Defense Intelligence Agency, a sub-agency of the U.S. Department of Defense, is staying put at 3100 Clarendon Blvd. in Arlington, VA.
The General Services Administration signed a renewal for the agency's 221,084-square-foot space that runs through 2018. The Defense Department has occupied nearly the entire 14-story, 242,350-square-foot building for the past 11 years.
The building delivered in 1987 and is owned by Piedmont Office Realty Trust.
Brian Connolly, Robert VeShancey and Marcy Owens Test of Jones Lang LaSalle, along with Ken Mulrane of Piedmont Realty Trust, represented Piedmont in the lease. Henry Chapman of CB Richard Ellis represented the tenant.
DoD Adds 113,000 SF in Falls Church
By Nicholas Hunter Mellott
A U.S. Department of Defense sub-agency has expanded by 113,000 square feet in the Suffolk Building in Falls Church, VA.
The agency has occupied 145,000 square feet in the building since 2003. The new lease runs through 2013.
Located at 5611 Columbia Pike, the seven-story office building totals 258,248 square feet. It was completed in 1964 and renovated in 2001, with additional security upgrades in 2005 and 2008. With the expansion, the federal government will fully occupy the building.
Kurt Stout, Charles Dilks and Keith Lavey of Grubb & Ellis' Government Services Group represented Carr Properties, the landlord, in the transaction.
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Expansions, Relocations & Extensions
A.T. Kearney, the Chicago-based management consulting firm, leased 10,367 square feet at 555 Mission St. in San Francisco. It signed a seven-year deal and is moving from 255 California St. in November. A.T. Kearney had originally negotiated for the 14th floor but will instead take occupancy on the 18th floor. The move allows the landlord, Tishman Speyer, to keep a large contiguous block of space available in the building. The 33-story, 550,000-square-foot tower delivered last year and is still mostly vacant, according to CoStar information. Nick Slonek from Cornish & Carey Commercial in San Francisco represented the tenant. Allen Palmer handled the deal in-house for Tishman Speyer. (By: Lauren Greenwald)
Co-Op Logistics, a bonded shipping and warehousing company, signed a new lease at 1131-1139 Bryn Mawr Ave. in Itasca, IL. The approximately five-year deal commences next month. The distribution building measures 126,000 square feet and is part of the Itasca Industrial Park, in the O'Hare Industrial submarket. Christopher Lydon and Sam Durkin with Grubb & Ellis represented the building owner, AMB Property Corp. Tom Rodeno with Colliers Bennett & Kahnweiler represented the tenant. (By: Justin Sumner)
The Clark County Department of Family Services signed a 10-year lease to occupy the office building at 121 S. Martin Luther King Blvd. The gross value of the lease was reported at about $15 million. The 63,365-square-foot building was built in 1973 in Central North Las Vegas. The tenant plans to occupy the space early next year. Charles Van Geel of American Nevada represented the lessor. David Scherer, Barton Hyde, Michael Hsu and Matt Kreft of Grubb & Ellis represented the lessee. (By: Justin McClure)
Feldesman Tucker Liefer Fidell LLP leased 18,677 square feet in the Liberty Building, at 1129 20th St. NW in Washington, DC. The law firm will occupy the fourth floor in June 2010. The 10-story, 176,390-square-foot office building completed a major renovation in June and is registered with the U.S. Green Building Council for LEED Gold certification. Phillip Thomas, Eli Barnes and Will Stern of Cassidy & Pinkard Colliers represented the owner, Liberty Property Trust. Bruce Pascal and Mike Fox of CB Richard Ellis represented the tenant. (By: Covell Fitzgerald)
iPayment, one of the largest providers of credit and debit card-based payment processing services in the nation, is relocating from 26707 W. Agoura Road in Calabasas, CA, to 30721 Russell Ranch Road in Westlake Village. The firm, headquartered in Nashville, TN, will occupy 31,665 square feet on the second floor of the office building. iPayment signed a 10-year lease commencing in December. Jim Lindvall and Dan Sanchez of Jones Lang LaSalle and David Saeta of IDS Real Estate Group represented the owner, TIAA CREF. Josef Farrar and David Kluth of UGL Equis represented iPayment. (By: Brian Cagayat)
Labriola Baking Co., an artisan bread wholesaler, signed a 10-year lease for 177,500 square feet in Alsip, IL. The company will relocate to Madison Partners Realty's manufacturing facility at 3701 W. 128th Place from its previous location, also in Alsip, at 5300 123rd Place. Built in 1975, 3701 W. 128th Place is the former home of the American Licorice Co. The 209,907-square-foot building features 4,177 square feet of office space, 25-foot clear heights and 25 exterior docks. Brad Weiner, George Maragos and Steve Livaditis of CB Richard Ellis represented Madison Partners. Larry Johnson, also of CBRE, represented Labriola Baking. (By: Emery Uwimana)
Menlo Worldwide Logistics leased 202,356 square feet at Building 8 of the Rock Run Business Park in Joliet, IL. IDI signed the third-party logistics provider to a five-year deal. The 352,000-square-foot distribution facility at 4000 Rock Creek Blvd. is about one mile east of the intersection of I-80 and I-55. Menlo plans to use the space on behalf of construction equipment manufacturer Caterpillar. John Suerth of CB Richard Ellis and Steve Shields of Transportation Property Co. represented Menlo. Mike Fonda, Brendan Kelly and Hugh Williams with Avison Young represented IDI.
NFI Industries Inc. signed a two-year, 93,997-square-foot lease with CenterPoint Properties in Building 3 of Elwood's CenterPoint Intermodal Center. This will be a brand new facility for the trucking and logistics giant that will take advantage of the high-speed cross-dock operation and tremendous trailer parking that the building provides. Building 3, at 27143 Baseline Road in Elwood, IL, is part of 10-building CenterPoint Intermodal Center. Dan Leahy and Adam Roth of NAI Hiffman handled the deal for CenterPoint. John Suerth of CB Richard Ellis represented NFI Industries. (By: Emery Uwimana)
Pandora Media Inc., an Internet radio firm, signed a five-year lease for 14,644 square feet in the Center Twenty One building at 2101 Webster St. in Oakland. Built in 1984, the 20-story building totals 472,631 square feet and is owned by CIM Group. Pandora Media will move from its current location at 360 22nd St. to its new space on the 16th floor. Mike Keely of Brandywine Realty Trust, along with Jeff Kreshek of CIM, represented the owner as well as the tenant. (By: Noel-Alexis Bautista)
Premier Packaging Systems Inc. agreed to a 10-year, 58,890-square-foot industrial lease at 1500 Harris Road in Libertyville, IL. The packaging and distribution provider will relocate a short distance from its current headquarters at 1001 Technology Way in the Libertyville Business Park. The building, also known as Liberty Point II, is in the Liberty Point Corporate Center. Ryan Bain, Zach Graham, Brett Kroner and Keith Puritz of CB Richard Ellis represented McShane, the landlord. John Pikarski of JD Partners represented the tenant. (By: Emery Uwimana)
Spherion Corp., a recruiting and staffing company, signed a 56,472-square-foot, 10-year office renewal at 925 N. Point Parkway in Alpharetta, GA. The four-story, 164-717-square-foot office building known as Parkview I at Opus Woods was built in 2001 and is in the North Fulton/Forsyth County submarket. Tom Miller and Justen Cimino of Grubb & Ellis represented the owner, Opus South Corp. William Kilborn and Charles Beard of CB Richard Ellis represented Spherion. (By: Kenneth Hutton)
Wollenweber Trucking and Warehousing, a trucking company based in Baltimore, renewed its 62,400-square-foot lease at 1954 Halethorpe Farms Road in Halethorpe. The 704,646-square-foot industrial building was built in 1942 and renovated in 1999. It is in the Arbutus industrial submarket. Rick Latini and K. Alan Orman of Colliers Pinkard represented the landlord, Halethorpe Business Trust. Jon DiVirgilio of Corridor Reznick LLC represented the tenant. (By: Nesvi Paradis)