Also Headquarters Property News from: AlloSource, Ansys, DuClaw Brewing, Extreme Networks, KPMG, OSI Systems, Shutterfly, Unwired Planet, Walt Disney World and more
The Hershey Co. this past week formally opened the world's most technologically advanced chocolate making facility - a $300 million investment in Hershey, PA.
The new 340,000-square-foot expansion at West Hershey is less than two miles from the company's original chocolate factory opened in 1905 by Milton Hershey.
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The new facility features proprietary, state-of-the-art technology never before used in the manufacture of confectionery. The new technology was developed specifically for the plant, including highly automated, large-scale Hershey's Kisses Chocolate operations. The plant's advanced information technology systems include automated, real-time diagnostics systems to help keep operations running smoothly 24 hours a day.
The expanded West Hershey facility is one of the company's largest capital investments and represents one of the largest construction projects in Pennsylvania in two decades.
The plant's workforce includes about 700 employees who transitioned from the original Hershey plant on East Chocolate Ave. - the company's oldest facility, which ran continuously from 1905 until its retirement in April 2012.
AlloSource
AlloSource, one of the nation's largest non-profit providers of skin, bone and soft tissue allografts, opened its new headquarter campus in Centennial, CO.
AlloSource broke ground on the 90,000-square-foot building addition in May 2011, nearly doubling the size of its headquarter campus and allowing for remote Denver-based offices to be consolidated under one roof.
"Ultimately, this new state-of-the-art headquarters means we can innovate and do more with the gift of tissue donation," said Thomas Cycyota, president and CEO of AlloSource. "Our new building allows us to streamline processes by housing all departments under one roof. It also gives us more room to grow, innovate and honor the gift of donation by bringing all of our associates back together."
Ansys
Ansys Inc. entered into a lease with Quattro Investment Group LP for 186,000 square feet of
rentable space in a to-be-built office facility within the Southpointe business park in Washington County, PA, which will serve as its headquarters.
Located less than a mile from its current 107,000-square-foot headquarters, the new 186,000-square-foot facility is scheduled to be ready in the fourth quarter of 2014.
The lease provides Ansys with a guaranteed expansion option that may be exercised in year 11 of the term for up to an additional 130,000 square feet of rentable space, but not less than 65,000 square feet of rentable space.
The lease became effective this month but Ansys will not be obligated to pay three months following the date of delivery, which is expected to be Oct. 1, 2014.
The term of the lease is 183 months and base rent will be $23 per rentable square foot per year. The base rent will increase to $24 per rentable square foot per year for years six through 10 and to $25 for years eleven through 15 of the term of the lease.
Jones Lang LaSalle's tenant representation group represented Ansys.
DuClaw Brewing
Craft brewer DuClaw Brewing Co. leased 62,962 square feet at 8901 Yellow Brick Road, a two-year-old warehouse-distribution building in Rosedale, MD.
DuClaw will use this location as its headquarters and plans to begin brewing in this facility early next year.
Jarred Testa and Tilghman Herring with Cassidy Turley's Baltimore Core Industrial Leasing Team represented the building owner, RREEF, in this lease transaction. The brewer was represented by Dave Dannenfelser with Colliers International.
Envoy Mortgage
By: Heather Berwanger
Envoy Mortgage Ltd., a full-service mortgage banking firm, signed a 30,907-square-foot headquarters lease renewal and expansion at the Halbouty Center in Houston, TX. The company, which will now remain in the property until 2018, re-signed for two spaces on the third and fifth floors for a total of 25,127 square feet. The tenant also expanded into 5,780 square feet on the fifth while giving up 4,233 square feet on the first floor.
Janae Evans and Joe Evans of Evtex Cos. represented the landlord, Woco Investment Corp. David Price of Cresa Houston represented Envoy Mortgage and Jay Kyle of Colliers International represented Martin, Bode.
Extreme Networks
Extreme Networks Inc. completed escrow on the sale of its corporate campus in Santa Clara, CA. In connection with the sale, the company entered into a lease agreement with 3515-3585 Monroe Street LLC (The Irvine Co.) for 132,864 square feet of
office space. The lease expires in August 2014.
The total monthly rents begins at $122,000 at the start of the lease and increases to $520,000 for the final six months of the term.
In addition to the monthly basic rent, Extreme Network will pay a fixed monthly contribution towards exterior operating expenses and real property taxes and assessments equal to $37,200 per month.
KPMG
KPMG LLP, the audit, tax, and advisory firm, unveiled its new Chicago headquarters at the Aon building on East Randolph Drive.
KPMG's Chicago managing partner Pat Canning said the firm expects to grow its Chicago office, including significantly expanding its workforce. The firm currently has 1,800 partners and professionals in Chicago and its new headquarters features a flexible mix of individual, open, and private meeting spaces combined with the latest technology on six floors and a mezzanine.
LMI
LMI agreed to terms with a joint venture of MRP Realty and Rockpoint Group to develop LMI's new headquarters at Jones Branch Drive in McLean, VA.
LMI, a not-for-profit government consultancy, will relocate in early 2015 from its current headquarters at 2000 Corporate Ridge in McLean.
The new LMI headquarters is designed by architecture firm Gensler and will be an 11-story, LEED-certified (to gold or above), Class-A
office building overlooking a pond, with the five top-most floors available for lease.
LMI will own an equity stake in the new building, and occupy the six lower floors.
The building, which will be located on property adjacent to the Gannett headquarters, will take advantage of Jones Branch Drive's central access to two future Silver Line Metro stations: Tysons Corner and McLean (formerly known as Tysons Central 123 and Tysons East, respectively).
McCain Foods
By: Queenie Bui
Wells Core Office Income REIT, an Atlanta-based real estate investment trust, acquired the 94,000-square-foot Corporate Lakes IV property in Lisle, IL, from Equity Office for $17.7 million, or about $188 per square foot.
The Class A office building was delivered in 1996 at 2275 Cabot Drive. The entire structure is occupied by the McCain Foods USA headquarters.
Peter Mitchell, Wells REIT's senior vice president of capital markets, represented the buyer internally. Paul Lundstedt, Daniel Deuter and Tom Sitz of CBRE represented the seller.
OSI Systems
OSI Systems Inc.'s health care division, Spacelabs Healthcare, will relocate its headquarters to Snoqualmie, WA, in a state of the art 176,000-square-foot building that was recently acquired by OSI Systems. The move is expected to be completed by next spring and result in occupancy cost savings.
"We continue to seek opportunities to enhance our facilities while simultaneously reducing our operating expenses in a sustainable manner. The new headquarters in Snoqualmie provides a significant upgrade from our current headquarters and at a lower cost. We congratulate the division and the corporate asset management team in successfully executing this real estate transaction," Deepak Chopra, CEO of OSI Systems commented.
The purchase price of the property was $14 million and was financed with an $11 million mortgage at an effective annual interest rate of 2.2%.
Shutterfly
Shutterfly Inc. will triple its East Coast manufacturing operations with a new state-of-the-art production facility in Fort Mill, SC.
Responding to significant business growth, this expansion will increase Shutterfly's photo-product East Coast operations footprint to 300,000 total square feet. The new facility is scheduled to open in the second quarter of 2013 and the existing Charlotte, NC, manufacturing space will be fully operational until that time.
With the new facility located less than 10 miles from the company's current location, Shutterfly expects to retain existing employees while creating new jobs during the next three years.
The Fort Mill facility will house a portion of production and customer service personnel for Shutterfly's four brands: Shutterfly, Tiny Prints, Wedding Paper Divas and Treat.
Unwired Planet
Unwired Planet Inc. plans to move its operations and corporate headquarters to Reno, NV, from Redwood City, CA.
"Nevada is a business-friendly, cost-effective and convenient location from which to run our intellectual property business," said Mike Mulica, CEO of Unwired Planet.
Unwired Planet's intellectual property business unit began its move to Reno last week. The company has signed a lease for space at 226 California Avenue in Reno, while new, larger offices are being built out on nearby Virginia Avenue. The remainder of the corporate headquarters will transition to Reno by June 2013, on or before its lease expires in California.
Walt Disney World
Inland Private Capital Corp. oration announced today sold the six-story, 193,463-square-foot office property fully occupied by Walt Disney World Co. or $31.1 million.
The buyer was an affiliate of WESTliving in Carlsbad, CA.
Completed in 2000, the building is at 220 Celebration Place in Celebration, FL, within the Celebration planned development.
There are approximately five years remaining on the property's lease.
Stan Johnson Co. facilitated the sale, which resulted in an overall internal rate of return of more than 8%.
Winchester Electronics
By: Tanika Belfield-Martin
Winchester Electronics, a leader in the design, development, and deployment of interconnect technology, signed a long-term lease to occupy 20,000 square feet at 199 Park Road Ext. in Middlebury, CT.
The company will be relocating its current headquarters to the 278,000-square foot industrial building formerly occupied by Timex Corp.
Winchester Electronics will be bringing 59 jobs to the area.
Ed Godin and Gerry Matthews of Matthews Commercial Properties LLC represented the landlord, Thylan Associates, along with in-house representative Chuck Genck. Michael Dillon of CBRE represented Winchester Electronics in the deal.
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