More Corporate Headquarters Transactions Include: American Transmission Co., Amerigroup, eClinicalWorks, Gap, Libbey, LinkedIn, Merrimack Pharmaceuticals, Orthman Manufacturing, PDF Solutions, Smiths Detection, Subaru, and Xactware
Vulcan Real Estate plans to sell its properties that house Amazon.com's global headquarters - a total of 11 buildings and 1.8 million square feet in the heart of Seattle's burgeoning South Lake Union neighborhood.
The Amazon.com campus is at the center of a newly revitalized neighborhood that is also home to global health organizations, multifamily residential developments, and a thriving retail and restaurant core that was once better known for warehouses and light industrial operations.
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Vulcan has chosen CBRE as the listing agent, with a team led by Kevin Shannon.
"The Amazon corporate headquarters buildings represent exactly what core capital wants today: new product featuring durable, credit income streams in great CBD locations. Markets like South Lake Union in Seattle, South of Market in San Francisco and Silicon Beach in Santa Monica, command premium rents because of huge tenant demand," Shannon said. "Technology and corporate tenants love state of the art campuses in amenity rich, transit oriented environments like Amazon's because these locations allow them to attract and retain the best talent in the workforce."
Vulcan has developed nearly 30 acres of land in South Lake Union and the company still owns an additional 30 acres that it plans to redevelop. In addition, the company will still maintain a 3 million-square-foot portfolio in Seattle.
Vulcan currently has two residential projects under construction, including Stack House, a 278-unit apartment complex in the South Lake Union neighborhood, and The Martin, a 188-unit apartment tower located in the north end of downtown Seattle. The company continues to invest in South Lake Union and elsewhere in Seattle as a primary component of its growth strategy.
Vulcan Real Estate directs all real estate strategies for Vulcan Inc., a Microsoft co-founder Paul G. Allen company.
REIT investors have been showing an interest in Amazon.com occupied properties.
Building Two of the Fowler Distribution Center at 800 N. 75th Ave. in Phoenix sold this past month to an affiliate of Industrial Income Trust for $90.29 million, or about $71 per square foot. The seller was the Buzz Oats Group of Cos.
This 1.3 million-square-foot distribution building was built in 2009 and is fully occupied by Amazon.com on a 10-year, triple-net lease that commenced in the fourth quarter of 2011.
The property was never on the market. Industrial Income Trust, which has purchased other properties occupied by Amazon, approached the owner.
Bo Mills, Mark Detmer and Jackie Orcutt of Cushman & Wakefield Inc. represented the seller.
American Transmission Co.
By: Joel Wiseman
Oak Street Real Estate Capital acquired the Ridgeview Office Center building at W234 N2000 RidgeView Parkway Court in Waukesha, WI, for $65 million, or about $428 per square foot, from Zilber Property Group and Interstate Partners LLC.
The 152,000-square-foot, Class A office property was completed in July 2009, and has been fully occupied by American Transmission Co. as its headquarters since then. ATC has a long-term lease in place with more than 10 years remaining.
The transaction was described as straight forward with no unusual conditions affecting the final selling price. The buyer paid cash for the property and the end of the 90-day contract period.
By: Karen Kester
Amerigroup signed a lease for 165,000 square feet at 14 Wall St. in New York.
Amerigroup will take floors 11, 12, 14, 21 and 22, consolidating its 50,000-square-foot office at 21 Penn Plaza, and its two Brooklyn facilities totaling 150,000 square feet, at its new downtown location which will also serve as its New York headquarters.
The move follows Amerigroup's recent acquisition of HealthPlus and represents a 20% reduction in its office space
footprint due to better efficiencies. The lease commences Jan. 1, 2013.
Alex Rovt, the building's new owner, along with partners Daniel Ghadamian and Josh Zamir with Capstone Equities, worked with CBRE's Howard Fiddle, Brad Gerla, Jonathan Cope and Evan Haskell on the transaction.
Studley's Zev Holzman and Paul Revson represented Amerigroup in the transaction along with Rich Hopen of Hopen Corporate Services.
eClinicalWorks, which provides ambulatory clinical systems, is expanding its headquarters in Westborough, MA, by purchasing 1 Technology Drive for $7.7 million. The 61,000-square-foot building will be used in conjunction with the 100,000-square-foot location at 2 Technology Drive and will provide the additional space needed to accommodate future expansion.
The newly acquired 1 Technology Drive joins 2 Technology Drive, Westborough, Mass., to create the company's principal headquarters complex. eClinicalWorks has additional offices in Chicago, New York City, Alpharetta, Ga., and Pleasanton, Calif.
The company's real estate team includes Managing Director Phil DeSimone of Jones Lang LaSalle and Patrick Bodden of eClinicalWorks.
Hines Global REIT Inc. contracted to acquire 550 Terry Francois, a core office building
in San Francisco, CA, from GLL Real Estate Partners Inc.
550 Terry Francois was constructed in 2002 and consists of 282,773 square feet of rentable area that is 100% leased through October 2017 to GAP Inc., a global specialty apparel company.
Although not determined until closing, Hines Global expects the total acquisition cost to be $180 million or about $636.55.
By: Laurie Forbes
Libbey Inc. signed a 15-year lease to keep its global corporate headquarters at Edison Plaza in downtown Toledo, OH. Libbey partnered with Mohr Partners, a global real estate advisory firm, to negotiate the lease.
Renovations in Libbey's new corporate headquarters space are scheduled to begin in late 2012 and will be led by architect and design partner Vocon from Cleveland, OH. The redesigned offices will provide associates with a more productive, collaborative and contemporary work environment.
Libbey's headquarters associates will relocate to the new work area in phases, with the new space complete in time to celebrate the company's 125th anniversary in August 2013.
The State of Ohio awarded Libbey a $1 million economic development grant for capital improvements and a $200,000 grant to enable Libbey to provide additional workforce training.
Libbey has also extended its lease with the City of Toledo for its Libbey Glass Factory Outlet store at the Erie Street Market and its lease with CAD Properties for its Libbey Glass Showroom at 335 N. St. Clair.
LinkedIn Corp. entered into a lease agreement with Sequoia M&M LLC and Sequoia Del Rey LLC for the lease of 560,000 rentable square feet to be located in a four-building project having an address at 555 Mathilda Ave. in Sunnyvale, CA.
The lease of the premises was effective as of Aug. 22, 2012, but because the premises are not yet under construction, the company will not be obligated to pay rent until three months after the landlord completes tenant. That is estimated to be July 2014, and LinkedIn anticipates that the lease term and its rental obligations will initiate in October 2014. The lease term is 12 years.
Under the lease, rent will be paid on a monthly basis and will increase incrementally from $1.8 million per month to $2.5 million per month through the end of the lease term, which is expected to be September 2026.
In addition, the lease requires the landlord to provide LinkedIn with an allowance of up to $50 per rentable square foot to construct improvements in the premises.
Merrimack Pharmaceuticals Inc. amended its research, manufacturing and office space lease at One Kendall Square in Cambridge, MA, with RB Kendall Fee LLC.
The amended lease provides that Merrimack Pharmaceuticals will lease an additional 23,250 square feet of the facility, for a total of 109,132 square feet, all of which will be leased until June 30, 2019.
The rent will be an average of $40.11 per rentable square foot per year and will increase to an average of $46.89 per rentable square foot per year by the end of the lease term.
RB Kendall Fee will provide Merrimack with a finish work allowance of up to $6.59 million.
The Amended Lease expires on June 30, 2019. The Company retains an option to renew the Amended Lease with respect to all of the Leased Space for an additional period of either one or five years.
A portion of Merrimack's lease had been set to expire in April 2013 and another portion in April 2015.
Orthman Manufacturing Inc. broke ground on its new, state-of-the-art manufacturing facility in Lexington, NE. The company, which specializes in the manufacture of agricultural and industrial equipment, will create 100 new jobs in the community.
The new, 115,000-square-foot steel building will operate in tandem with its northeast Lexington facility.
Once the new plant is complete, the company will move part of its operations to the new facility. Orthman will continue to use its second facility northeast of Lexington, but has agreed to sell the city its building east of Lexington to be used as a speculative industrial building.
The new facility will be built by BD Construction of Kearney, NE, on 28 acres at the Lexington Southeast Business Park. Construction is scheduled to be complete by August 2013.
"The added capacity will allow us to competitively supply our agronomy-based technology into the industry that is feeding the world, keeping them efficient," said Orthman president John McCoy.
Orthman is receiving assistance on the building project through the Nebraska Advantage Act, which offers tax incentives to companies willing to expand and create new jobs.
PDF Solutions Inc.
In anticipation of lease expiration Oct. 1, 2013, PDF Solutions Inc. amended its office lease with Legacy Partners I Riverpark LLC for its corporate headquarters at 333 W. San Carlos St., Suite 1000 in San Jose, CA.
The amendment extends the term of the lease and reduces the size of current rentable space
PDF is cutting its headquarters space by 21,171 square feet to 28,618 rentable square feet. The lease will now run through Sept. 30, 2018, with an option to renew for an additional three (3) year term.
The company is not required to pay rent under the amendment for the period from May 16, 2013, through Sept. 30, 2013 for a total saving of $743,848.
Smiths Detection is expanding its plant at 2202 Lakeside Blvd. in Edgewood, MD, as its new U.S. headquarters, part of its strategy of aligning production more closely to major customers. U.S. operations are currently based in Danbury, CT.
Its long-standing Edgewood facility already plays a key role in meeting the growing demand for advanced threat detection technologies from government agencies and companies representing aviation, transportation, military, emergency response and public infrastructures.
"Growing our Maryland footprint gives us the opportunity to work more closely with core customers in and around Washington, DC, whose mission is homeland security," said Lance Roncalli, U.S. managing director for Smiths Detection.
Smiths Detection has invested more than $8.5 million in its Edgewood operation, increasing the local workforce by more than 25%.
The site recently expanded by more than 100,000 square feet to accommodate manufacturing for the company's X-ray, baggage screening, and security scanning systems. Edgewood is also where Smiths Detection makes joint chemical agent detectors.
Subaru of America
By: Randyl Drummer
Subaru of America has tapped NFI to relocate and expand the automaker's parts distribution center and training facility to a new 526,050-square-foot location in Florence, NJ.
The Subaru facility at NFI Park at Florence Crossings at 2020 Route 130 North will be a tilt-up concrete structure with 32-foot clearance, 83 loading doors and 17,000 square feet of office and training space. At full build-out, the NFI Park will comprise approximately 1.65 million square feet.
Construction began shortly after Florence Township officials approved the development. The facility's projected date to open for full operations is June 1, 2013.
Cherry Hill, NJ-based NFI, a supply chain solutions firm, completed the transaction with Subaru of America and their real estate brokers from CBRE Inc. on June 29, less than three months from the initial proposal for the opportunity.
Michael Landsburg, vice president of real estate for NFI, said the company positioned the site to be shovel-ready, including obtaining state approvals to build highway improvements.
The tax incentive provided by Florence Township was an integral part of the selection of the NFI Park site by Subaru and will provide significant savings on real estate taxes during Subaru's occupancy.
The 526,050-square-foot project is the largest built-to-suit development in New Jersey this year, and will be one of the new buildings constructed by NFI Real Estate.
Xactware, a provider of estimating, analytics, and management technology for the property insurance, remodeling, and restoration industries, has chosen to locate its new 210,000-square-foot headquarters at Traverse Mountain in Lehi, UT.
The building, which will be located near Timpanogos Highway in the Traverse Mountain Business Park, is projected to be completed by February 2014. The environmentally friendly and highly energy-efficient building will be constructed to the U.S. Green Building Council's LEED Silver certification standard.
The facility will feature a state-of-the-art data center, beach volleyball courts, basketball courts, and a fitness center.
The new Xactware campus will be located just two miles from the new Thanksgiving Point FrontRunner station and within walking distance of a future TRAX station and the new Murdock Canal Trail system.
Traverse Mountain Commercial, the developer, hired Big-D to lead the design-build process in coordination with GSBS Architects of Salt Lake City.
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