In this week's issue:
- Seyfarth Shaw LLP and The Boston Consulting Group Inc. prelease 121,000 square feet in Atlanta
- The GSA signs a 400,140-square-foot lease in Hagerstown, MD
- Jacobs Trading Co. leases 285,000 square feet in Hopkins, MN
- Verizon becomes the largest tenant at 560 Lexington
- Plus, we give you expansion news of: ABB, Albert Tire Co., American Apparel, The Benecon Group, CVS Pharmacy, Goodwill Industries, Intersections Inc., JVD Construction, KPMG LLP, Overland Distribution, Prommis Solutions, Serious Materials, Shoals Technologies, Titanium Holdings and Wells Fargo Trade Capital.
By: Laurie Forbes
Law firm Seyfarth Shaw LLP and The Boston Consulting Group Inc. preleased 121,000 square feet at 1075 Peachtree St., a 725,000-square-foot, 38-story office tower under construction in Midtown Atlanta. Seyfarth Shaw will occupy 84,000 square feet and Boston Consulting Group will take 37,000 square feet.
The two firms are the first office tenants to sign leases at phase two of 12th & Midtown, a $2 billion flagship mixed-use development.
Seyfarth Shaw spent nearly three years searching for office space that met its economic objectives. The firm said it wanted to expand its local branch to a Midtown location on Peachtree Street while reducing costs. Boston Consulting wanted space in a premiere building with panoramic views and access to Atlanta’s upscale offerings.
Daniel Corp., Selig Enterprises, MetLife and Canyon-Johnson Urban Funds teamed to develop 12th & Midtown, a 3 million-square-foot project that spans four city blocks at Peachtree and 12th streets in Atlanta’s Midtown Mile. When completed it will feature 1.2 million square feet of Class A office space, approximately 600 hotel rooms, about 1,000 residences and more than 200,000 square feet of
retail space.
The 1075 Peachtree building is part of a second phase, $600 million, 1.4 million-square-foot complex featuring the LEED-registered office tower, a 414-room Loews Atlanta Hotel, 52 luxury residences and 60,000 square feet of retail space. Phase two is scheduled to deliver in first quarter 2010.
Phil Barry and Hilton Barry of Grubb & Ellis Co. represented Boston Consulting. Cushman & Wakefield represented Seyfarth Shaw. And Steve Baile and Doug Guedry were the in-house representatives for Daniel.
By: LaShawnda Sharp
The U.S. General Services Administration (GSA) signed a 10-year lease for 400,140 square feet in the Liberty at Hunters Green II building park in Hagerstown, MD.
GSA will occupy its space at 11841 Newgate Blvd. in October. The 615,600-square-foot distribution center was developed by Liberty Property Trust and delivered last year.
Troy Briggs represented Liberty Property Trust in the deal. John Wilhide of CB Richard Ellis represented the tenant.
By: Charles Fish
Jacobs Trading Co. (JTC) leased 285,000 square feet at 8090 - 8098 Excelsior Blvd. in Hopkins, MN. Occupancy is scheduled for April.
The 330,000-square-foot warehouse was constructed in 1947 in the Southwest Industrial submarket and received renovations in 1965. Features include 25 loading docks and 14 drive-in doors.
JTC specializes in solving excess inventory and return challenges for retailers and manufacturers.
Traci Tomas of Continental Property Group represented the tenant and the landlord, Gateway Hopkins Warehouse.
Verizon Business Services has taken another three floors and 49,815 square feet at 560 Lexington Ave. in New York.
The Verizon network's sales and customer service branch inked a seven-year deal with Rudin Management Co. The expansion makes Verizon the building's largest tenant at 116,000 square feet and seven floors.
Thomas M. Keating handled the deal in-house for Rudin while Jeffrey Heller of Cushman & Wakefield negotiated on behalf of Verizon.
Rudin delivered the 22-story, 382,580-square-foot office building in 1981, across from the historic Waldorf-Astoria Hotel. Other notable tenants include Bayern LB, Mitsui Sumitomo Marine Management and Hudson Highland Group, according to CoStar information.
Read Expansions & Relocations First
Receive notice when a new Expansions & Relocations column is published by receiving The Watch List newsletter. The Watch List is a powerful one-two-combination of both top-down macro analysis and bottom up micro real estate news, as well as valuable leads about companies expanding and contracting and property and loan investment opportunities. It is available for free by e-mail, which is the quickest way to review all of the news in the column as soon as it is published and link directly to the news and features you want. Just e-mail your name, title, company, company business, city, state, and e-mail address. Just click on the byline above or send an e-mail to Andrew Deichler or Mark Heschmeyer.
Expansions & Relocations
ABB, a power and automation technology company, leased 85,748 square feet from Simmons Vedder Partners at Westchase Park. Westchase Park is a 270,000-square-foot, Class A office building under construction at 3700 W. Sam Houston Parkway in the Westchase submarket of Houston. Its anticipated completion date is June. ABB will take occupancy in January 2010. Mike Boehler of Jones Lang LaSalle represented the tenant. Jeff Pace represented Simmons Vedder Partners, in-house. (By: Brandon K. Skaggs)
Albert Tire Co. purchased the industrial facility at 117 Crown Point Road in Thorofare, NJ, for $12.2 million, or $66 per square foot, from Exeter Property Group. Move-in is slated for March. The 183,570-square-foot distribution building was built in March of last year and features 60 loading docks, two drive-ins, 32-foot ceiling heights and heavy power. Jim Young, Harry McKenna and Louis Battagliese of Jackson Cross Partners represented both sides in the transaction. (By: Michael Bauer)
American Apparel has renewed its existing lease for 32,000 square feet at 12691 Pala Drive in Garden Grove, CA, and expanded by another 38,000 square feet. The 70,000-square-foot transaction was treated as one deal with a ten-year term. The 84,700-square-foot manufacturing building was constructed in 1973. Michael Bouma of Voit Commercial Brokerage represented the landlord, Kilroy Realty Corp. Michael Meraz of Magnum Properties represented American Apparel. (By: Amber Jagers)
The Benecon Group purchased the office building at 147 W. Airport Road in Lititz, PA, from private investors for $2.85 million, or $113 per square foot. The benefits and consulting firm also acquired the adjacent 1.8-acre land parcel for $250,000. The two-story, 25,100-square-foot office building was built in 1991 in Lancaster County. The new owner intends to occupy the building and use the adjacent land for additional expansion. Dan Berger of NAI Commercial Partners represented the seller. Christine Sable of Horst Realty represented the buyer. (By: Anna Kurban)
CVS Pharmacy has signed an 80,600-square-foot industrial lease at 2701 Keystone Pacific Parkway in Patterson, CA. The 529,970-square-foot warehouse facility was completed in October and is Building A of the Keystone West Business Park. Features include 120 loading docks, 120 drive-in doors, 32-foot ceilings and three-phase power. John McManus and Chuck Belden of of Cushman & Wakefield represented the tenant. Kevin DalPorto of CB Richard Ellis represented the landlord, a joint venture of McShane Development and MetLife.
Goodwill Industries purchased the industrial building at 3001 St. Lawrence Ave. in Reading, PA, from Fleetwood Industries for $3.65 million, or $24 per square foot. The 150,000-square-foot warehouse was built in 1957 and received renovations in 2001. Goodwill will be relocating 50 full-time employees from its Shillington site and also adding 14 new jobs. Bryan Cole of NAI Keystone Commercial represented the seller. Mark Reda of Richard Seltzer Realtors represented the buyer. (By: Jovan Mcdougal)
Intersections Inc., a global risk management firm, leased 88,273 square feet of office space within the Avion Business Park in Chantilly, VA, where it will move in July. Intersections will occupy 69,564 square feet at 3901 Stonecroft Blvd., also known as Avion Tech 1, and 18,709 square feet at 14700 Avion Parkway, which is known as Avion Tech Center II. The single-story flex buildings have a combined total of about 150,000 square feet. Avion Business Park is a 188-acre master planned business community adjacent to Washington-Dulles International Airport. Terry Reiley and Carter Byrnes of CB Richard Ellis represented the landlord, Advance Realty Group. Henry Chapman, also of CB Richard Ellis, represented the tenant. (By: Jesse Ruscheinsky)
JVD Construction acquired 350 Anchor Road in Casslberry, FL, for $3.6 million, or about $33 per square foot, from Walter Bonnet Manufacturing. The 110,240-square-foot warehouse was constructed in 1971 on about 18 acres in the Seminole County Industrial submarket. JVD Construction is in the process of renovating the facility with move-in scheduled for three to four weeks. David Murphy of CB Richard Ellis represented the seller. Marie DiSalvatore of Realty Executives represented the buyer. (By: Brendan Carroll)
KPMG LLP signed a lease for 43,377 square feet of office space at 20 Pacifica in Irvine, CA. The Irvine Company signed the tax and audit services giant to a 10-year term. The 14-story, 312,184-square-foot office building delivered in 2007 in Irvine Spectrum. KPMG will occupy the entire seventh floor and most of the eighth floor. Thomas Murphy, Curtis Ellmore and Jeffrey Ingham of Jones Lang LaSalle represented KPMG. The Irvine Co. was self-represented. (By: Frederick Ankenman)
Overland Distribution signed a lease for 103,184 square feet of industrial space at the Port Crossing Commerce Center at 1701 S. 16th St. in La Porte TX. The 412,655-square-foot industrial building was built in 2007. It features 60 loading docks and a maximum ceiling height of 30 feet. There is 103,185 square feet left available for lease in the building. William Gold and Jeff Everist of CB Richard Ellis represented the landlords, National Property Holding and ML Realty Partners LLC. Greg Egan of Leasesquarefeet.com represented Overland Distribution.
(By: Dameon Makinde)
Prommis Solutions, a locally based IT outsourcing firm, renewed and expanded its headquarters lease in building 400 at The Pointe. The company signed a new 18,000-square-foot deal to occupy a total of 67,000 square feet at 400 Northridge Road in Atlanta. Building 400 is a 256,440-square-foot office building. The Pointe is a 411,615-square-foot office development in the Central Perimeter submarket. The development is now 88 percent leased. Jeff Frantz, senior vice president at Jones Lang LaSalle, represented the owner, Gateway Mosswood Inc. David Andes and Steve Farrar of Newburger-Andes represented Prommis Solutions. (By: Lance Grisham)
Serious Materials, a developer of green building materials, leased the Kensington Windows manufacturing facility at 1136 Industrial Park Blvd. in Vandergrift, PA. Kensington Windows, which had signed a new long-term lease at the facility last spring, recently closed its operations and sold its manufacturing assets to Serious Metals. Kensington Windows had been operating in the 103,225-square-foot manufacturing building for approximately 20 years. Pat Tracy and J. Keefe Ellis of Langholz Wilson Ellis represented the landlord. (By: Mike Freitag)
Shoals Technologies, a solar panel component manufacturer, purchased the industrial facility at 128 Distribution Parkway in Portland, TN, from Distribution Plus LLC for $2.8 million, or $27 per square foot. The 103,200-square-foot warehouse was constructed in 2005 on 25 acres in the Westgate Business Park. The building features 15 loading docks, one drive-in bay and 29-foot ceilings. Jeb Atkinson and Randy Wolcott of ProVenture Commercial Real Estate represented the buyer and seller. (By: Autumn George)
Titanium Holdings Inc., a national provider of home retention counseling services in the mortgage industry, recently opened its 45,152-square-foot headquarters at 1000 HSBC Way in the Edgewater Corporate Center. The Fort Mill, SC, building will house Titanium's home owner counseling center along with the REO (Real Estate Owned), sales and dispositions departments. Trinity Partners was able to fulfill Titanium's expectations by finalizing a sublease agreement with HSBC last November. Furthermore, Trinity was able to facilitate the offering of corporate incentives from the county and state, which helped reduce the real estate costs over the life of the lease. Titanium will start with 40 employees with plans to grow to more than 300 employees over the next five years. Ben Speir and Ryan Johnston of Trinity represented Titanium. Louis Stephens and Andrew Colangelo of Jones Lang LaSalle represented the sublandlord, HSBC. (By Antwan Davis)
Wells Fargo Trade Capital has leased the 44,716-square-foot third floor at 100 Park Ave. in New York. SL Green signed the bank-affiliated factoring company for 10 years. The Cushman & Wakefield team of Paul Glickman, Tara Stacom, Jonathan Tootell, Alexander Chudnoff, Andrew Ackerman, Diana Biasotti and A. Mitti Liebersohn represented SL Green. James Travers and James Fish of Travers Realty, along with Keith Caggiano of CB Richard Ellis, handled the deal for Wells Fargo. The 36-story, 825,815-square-foot office tower was built in 1950 in the Grand Central submarket. SL Green recently completed a $72 million renovation at 100 Park Ave., constructing a two-story atrium lobby, re-cladding the facade and improving the infrastructure.