In this week's issue:
- Army chooses Alexandria, VA, for 6,400 jobs.
- KPMG is taking more than half of Two Financial Center.
- Plus, we give you expansion news of: CHEP USA, Community Health Network, Equitable Resources, eResearch, FamilyCare, Flextronics, IBM, Kemira, National Student Clearinghouse, Optimum RE Insurance, Ralcorp Holdings, Seyfarth Shaw, Triton Systems, Wahlco and others.
Army Chooses Alexandria, VA, for 6,400 Jobs
By: Randyl Drummer
The U.S. Army will relocate 6,400 U.S. Department of Defense employees to a 16-acre site owned by Duke Realty Corp. in Alexandria, VA. The announcement follows at least a year of effort by elected leaders who hoped to steer the relocation to a more transit-centered site.
The Department of Defense will acquire the land in Mark Center from Indianapolis, IN-based Duke Realty in a deal expected to close before the end of the year. Terms of the transaction were not disclosed. The land will become part of Fort Belvoir in accordance with Base Realignment and Closure Act (BRAC) recommendations adopted by Congress in 2005.
Mark Center was not the site favored by Northern Virginia officials, who are concerned about traffic congestion and hoped to shift the relocation to either Springfield -- which they said has better access to Metro and Virginia Railway Express -- or to an alternate site in Alexandria.
Duke will develop bus and shuttle connections at the site in an effort to mitigate traffic.
Mark Center is a 350-acre mixed-use campus at Interstate 395 and Seminary Road, four miles from the Pentagon. In addition to the 16 acres proposed for 1.7 million square feet of new office space for the Army, Duke owns, leases and manages 12 office buildings totaling nearly 1.3 million square feet at the center.
Duke will be the project developer and Clark Construction will be Duke’s general contractor. The DoD will own the site, acquired by Duke as part of the Mark Winkler portfolio when the development-oriented REIT entered the Washington, D.C. market in 2006.
The site has supporting infrastructure and necessary zoning approvals from the City of Alexandria in place and hopes to begin the project in January, Duke officials said. The BRAC deadline for completing the office campus is September 2011.
KPMG Taking More Than Half of Two Financial Center
Accounting giant KPMG agreed to lease approximately 115,000 square feet at Two Financial Center, the 12-story, 213,366-square-foot office building recently completed by a joint venture of Lincoln Property Co. and ASB Capital Management near South Station in downtown Boston.
KPMG said it plans to move from its current location at 99 High St. to the building in June 2010. KPMG currently has 692 employees in its Boston office, and it is the first office tenant to commit to the new building.
"We considered other options and our investment in Two Financial Center demonstrates our commitment to the city of Boston," stated Bud LaCava, KPMG’s Boston managing partner in a statement announcing the lease agreement.
Construction on Two Financial Center began in the summer of 2007 by general contractor Suffolk Construction. The building is the first new office building to be built in the Financial District since 2003, and includes 7,000 square feet of ground floor retail space and a 210-car below-ground parking garage.
Cushman & Wakefield’s executive director Jay Driscoll and senior director Jim Brady in Boston, with vice chairman Edward Weiss in New York, represented KPMG in its office search and lease negotiations. The landlord was self-represented by senior vice president John D. Miller of Lincoln Property Co. Legal counsel for KPMG was provided by Michael Kinney of Loeb & Loeb and Lincoln Property was represented by Jim Hackett and Tim Smith of Nutter McLennan & Fish.
Lincoln Property and ASB Real Estate Investments are also development partners in 320 Summer Street, a proposed historic office redevelopment project in Boston’s Seaport District.
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Expansions & Relocations
CHEP USA, a provider of pallet and container pooling services, leased 311,000 square feet from First Industrial Realty Trust at the Shadeland Manufacturing & Distribution Center in Indianapolis. Brian Seitz and Steve Schwegman of Meridian Real Estate represented the landlord. Greg Lance of UGL Equis in Dallas, TX, represented the tenant. (By: Carlin K. Cook)
Community Health Network will be the first tenant for the new two-building medical office facility, Hamilton Healthcare Campus, on 11.5 acres on the southwest corner of 146th Street and Cumberland Road in Noblesville, IN. Community Health Network will occupy 40,000 square feet on two floors. Occupancy is expected in summer 2009. The project costs will exceed $20 million.
Equitable Resources Inc., a natural gas company, leased 257,000 square feet from The Blackstone Group in Downtown Pittsburgh's Dominion Tower. Occupancy is slated for October next year. The occupancy at Dominion Tower fell below 50% in 2007 after Dominion Resources vacated the building. The addition of Equitable Resources, teemed with the 90,000-square-foot addition of Cohen & Grisby, P.C. last February, will bring the building to 95% occupancy. Patrick Greene of CB Richard Ellis represented the landlord. David Koch of Fischer & Co. represented the tenant. (By: Brandon K. Skaggs)
eResearch, a medical technology provider, signed a 59,395-square-foot lease with Grubb & Ellis Realty Investors at 1818 Market St. in Philadelphia. The space will serve as the company's new headquarters. Jeff Mack and Bill Finnegan of GVA Smith Mack's Wayne office represented eResearch. Jim Mullarkey of GVA Smith Mack represented the landlord. (By: Michael Poole)
FamilyCare, a health insurance provider, leased the 22,105-square-foot third floor at the Lloyd Center Tower in Portland from Stamford, CT-based investor Albert B. Ashforth Inc. Occupancy is scheduled for December. Matthew Bassist and Douglas Pugh of Ashforth Pacific represented the landlord. Gordon King of Colliers International represented the tenant. (By: Phoebe Doan)
Flextronics signed a 214,320-square-foot expansion at Building D of Chickasaw Distribution Center in Memphis, TN. The new lease brings the electronics manufacturing services provider's total square footage to 414,504 square feet. Tim Moore of IDI represented the private landlord. Scott Pahlow of Grubb & Ellis represented Flextronics. (By: Heather Berwanger)
IBM signed for 122,679 square feet at Dulles Station West in Herndon, VA, at 2300 Dulles Station Blvd. IBM will occupy five floors. A team from the Northern Virginia office of Grubb & Ellis represented the landlord, Washington Real Estate Investment Trust, and IBM. (By: Jennifer Sumner)
J&J Holdings signed a 100,000-square-foot lease at the First Highland Management and Development Corp. Business Center in Greensburg, IN. Jake Sturman and Steve Schwegman with Meridian Real Estate represented the landlord. Brian Zurawski of Summit Realty Group and Si Pitstick of Cincinnati Commercial REALTORS/Cushman & Wakefield represented the tenant. (By: Jennifer Herbert)
Kemira, a global leader in water and fiber management chemistry, leased 40,000 square feet for its North American research and development center at Technology Enterprise Park adjacent to The Georgia Institute of Technology in Atlanta, GA. Kemira will open the center in the summer of 2009, and is expected to employ 85 people at the Midtown Atlanta facility. Jones Lang LaSalle’s Rob Metcalf, Brannan Moss, and Nicole Janney represented Kemira.
National Student Clearinghouse signed for 31,376 square feet on the third floor at Dulles Station West in Herndon, VA, at 2300 Dulles Station Blvd. John Thomas and Kelly McBride of Jones Lang LaSalle represented National Student Clearinghouse. A team from the Northern Virginia office of Grubb & Ellis represented the landlord, Washington Real Estate Investment Trust. (By: Jennifer Sumner)
Optimum RE Insurance Co. purchased 1345 River Bend, a 58,408-square-foot Class B office property in Dallas. The new owner will occupy the property. James Buddrus and Greg McLane, both of Swearingen Realty Group LLC, represented the seller, Virginia Surety. Brad Andrews of San Jacinto 4921 Inc. represented the Optimum RE Insurance. (By: Dan Bates)
Ralcorp Holdings completed a 28,306-square-foot lease at Morris Corporate Center II in Parsippany, NJ. Colliers Houston associate Scott Lawliss represented the tenant, Ralcorp.
Seyfarth Shaw LLP subleased 76,789 square feet of space at Carroll Square at 975 F St. NW in Washington, DC. Seyfarth Shaw is expected to relocate from 815 Connecticut Ave. NW in early November. Following the merger of Dewey Ballantine and LeBoeuf Lamb in 2007, the two firms consolidated their operations with Dewey moving into LeBoeuf’s offices at 1101 New York Ave. Seyfarth Shaw subleased 85% of the space vacated by Dewey LeBoeuf, gaining signage rights, expansion, contraction and renewal options in space that Dewey LeBoeuf had occupied less than two years. Patrick Marr, executive vice president of CB Richard Ellis along with Sally Wilson, Chau Leung and Todd Lippman, represented Seyfarth.
Switch & Data Facilities Co. entered into a lease for a 79,200-square-foot facility at 180 Peachtree St. in Atlanta, GA. The lease commences Dec. 1, for a term of 15 years, which Switch and Data may renew, at its discretion, for an additional 10 or 15 years.
Triton Systems of Delaware Inc., an ATM maker, plans to establish a research and development (R&D) Center in Long Beach, MS, and to expand its Global Service Center in Bartlett, TN. While all plans have not been finalized, the state-of-the-art R&D center's primary focus will be on developing new ATM software and hardware. Triton's Service Center, located in Bartlett, TN, a suburb of Memphis, together with Nautilus Hyosung's Dallas office will provide a basis for the company's nationwide service infrastructure, and will handle parts and repair for both Triton and Nautilus Hyosung products.
The Workers Compensation Fund is beginning construction of a new headquarters building in Sandy, UT. The six-story office will total 150,000 square feet at 100 W. Towne Ridge Parkway, between I-15 and State St. Construction is expected to complete in about two years. (By: Gail Lopez-Boire)
Virginia Sealing Products purchased the 108,350-square-foot industrial property at 8140 Quality Drive in Prince George, VA, for $3.5 million, or approximately $32 per square foot. The buyer will occupy about half the property and plans to lease out the balance of space. Charles Louthan of Grubb & Ellis|Harrison & Bates and Doug Faris of Binswanger represented the seller, Northstar Commercial Partners. Mark Specter of Specter Properties Inc. represented the buyer. (By: Victoria Cottman)
Virginia T's, a textile wholesaler, leased 208,000 square feet in the industrial facility at 11200-11300 Old Stage Road in Chesterfield County, VA. The firm relocated from Petersburg and took occupancy last month at the 380,000-square-foot building. Stuart Cary and Greg Creswell of Grubb & Ellis|Harrison & Bates represented the landlord, HON Inc. Jeff Cook of Thalhimer, a member of the Cushman & Wakefield Alliance, represented Virginia T’s. (By: James Goolsbee)
Wahlco, an environmental equipment and services company, leased 53,802 square feet from Barclay & Associates at 2722 Fairview St. in Santa Ana, CA. The total lease consideration was $3.4 million for the 86-month lease deal. Jeff Mitchell of Voit Commercial and Rick Hertel of Corporate Real Estate Services represented the landlord. Jeff Mitchell also represented the tenant. (By: Amber Jagers)
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