Weekly CoStar Column Spotlights Trends, New Projects and Construction Entering (Or Leaving) the Commercial Real Estate Development Pipeline
In this week’s column,
Barnhart Inc. starts another military construction project, this time for a "wounded warriors" barracks at
Camp Pendleton in Southern California; a beverage maker
closes on the purchase of land for a major California and Southwestern production and distribution facility at the
former George AFB in Victorville, CA; a South Florida developer of government property
sells a parcel to a self-storage owner in Miami; Boylan Development
begins construction of a mixed-use project in Holly Springs, NC; and two Chicago development companies
team up for a joint venture to build a mixed-use development called Promenade Place. Plus,
more land sales and new development...
In The Pipeline is a column by Senior News Editor Randyl Drummer on significant land sales, transactions and trends affecting office, industrial, flex, multifamily, mixed-use, hotel and public works developers. Send us news leads about your new project --
and sign up to be added to our distribution list to receive future In the Pipeline columns for free by e-mail.
Read previous columns.
Barnhart Builds ‘Wounded Warrior’ Facility at SoCal Marine Base
San Diego-based Barnhart, Inc. and the Naval Facilities Engineering Command (NAVFAC) Southwest are breaking ground this month on a $23-million bachelor enlisted quarters for Marines and sailors in the Wounded Warrior Battalion West stationed at Marine Corps Base Camp Pendleton, CA. Delivery is expected in 12 months.
The 66,000-square-foot barracks includes 100 semi-private suites modified to accommodate service members recovering from various injuries. The facility features lounges, kitchens, interactive gaming areas, computer alcoves and an expansive outdoor deck with views of a nearby lake and surrounding hills. The barracks also includes basketball and volleyball courts and barbecue areas. The two-story structure built to LEED Gold standards will feature a calming palette of colors and finishes. Cass, Sowatsky, Chapman & Associates Architects is providing design and engineering services.
Barnhart has now picked up seven military projects in California since 2007. The firm is currently working on a Weapons and Armaments Technology Center at China Lake (Ridgecrest, CA) , upgrades to Berth Lima at Coronado (in San Diego County) and modernization of Bachelor Enlisted Quarters at Twentynine Palms (in San Bernardino Co.)
Beverage Maker Closes on 53 Acres at Former SoCal Air Force Base
Hard construction begins this month of an 850,000-square-foot, $120 million facility at Southern California Logistics Airport in Victorville, CA, where Dr Pepper Snapple Group, Inc. will produce up to 40 million cases of beverages annually for distribution throughout California and parts of the Southwest.
Plans for the project
were first announced last June. Although Dr Pepper Snapple broke ground in a ceremony in October, Denver-based DCT Industrial Trust Inc. (NYSE:
DCT), a joint-venture partner in master developer Stirling Capital Investments, indicated Feb. 13 in its fourth-quarter 2008 earnings call that it was still awaiting the closure of the land sale. Dr Pepper Snapple Group, which markets more than 50 products, including 7UP, Sunkist, A&W root beer, Canada Dry and Schweppes, expects to complete construction during the second quarter of 2010.
The project at Stirling Capital's Southern California Logistics Center development includes 550,000 square feet of warehouse space and a 300,000-square-foot manufacturing plant with up to six manufacturing lines. The development is within the 8,500-acre Southern California Logistics Airport, a multimodal transportation hub at the former George Air Force Base.
Stirling Capital is a joint venture between DCT and Stirling, a Foothill Ranch, CA-based development company specializing in master-planned communities and major land renovations. SCLA has about 2 million square feet of industrial space in various stages of development, with room for more than 60 million square feet at build out.
South Florida Partnership Sells Land in Miami
South Florida Federal Partners-Kendall LLC (SFFP) sold a 2.8-acre commercial development site at 147 Avenue and 118th Street to a storage space company.
Stephen E. Gaunt and Eric P. Gaunt of CresaPartners represented South Florida Federal Partners, an owner and developer specializing in GSA, federal, and state facilities, in the $2.35 million sale to Extra Space Storage.
The surplus property is located in the Kendall/Tamami Airport area near the new US-Citizenship and Immigration Services (CIS) facility developed by SFFP. The CresaPartners brokers also repped SFFP in the purchase of that land at NW 7th Avenue and 88 Street.
Boylan Development Begins Mixed-Use Apt. Project in NC
Raleigh, NC-based real estate firm Boylan Companies has begun construction on Main Street Square Apartments, the first urban mixed-used development in the heart of Holly Springs, N.C.
The project backed with capital investment by RBC Bank is slated to open this summer. The apartments are part of the 37-acre Main Street Square mixed-use community Main Street Square, which includes more than 100 townhomes, 172 apartments, 16 single-family homes and 80,000 square feet of retail, office and restaurant space.
The project will capture the character of a traditional North Carolina downtown neighborhood, with buildings placed near tree lined streets, and all building facades feature brick and cast stone.
Holly Springs is one of the Triangle’s fastest growing areas, and the construction of Main Street Square comes as Boylan Development nears the end of phase one of another development, The Landing at Southpoint, a 54-unit luxury condominium community in Durham, NC, priced from the $200,000s.
Chicago Firms Team Up on Mixed-Use Promenade Place Project
By Charles Koehler
Two Chicago development companies, Podolsky Northstar CORFAC International and Peak Development, formed a joint venture that marks the final stage of the planned 21-acre mixed-use property that will include office buildings, medical office space and an age-restricted apartment community to be known as Promenade Place. Although several designs are still being considered, Podolsky and Peak will create three speculative office structures totaling 170,000 square feet and two residential/medical-office buildings totaling 30,000 square feet highlighted by extensive natural features and business/lifestyle amenities.
The first phase of the residential portion is scheduled to start construction this year. The office component will be marketed for a corporate build-to-suit.
Although the overall commercial market is softening, Randy Podolsky, managing principal of Podolsky, said that there is great need for the new complex because nearby Tallgrass Corporate Center leases approximately 500,000 square feet of office space since transitioning from an industrial complex to an office facility in 2005.
Michael Zucker, principal of Peak, said the location of the property is ideal as it is immediately west of Interstate 355 and has easy access from the Broughton/I-355 interchange.
The Promenade Bolingbrook is northeast of the new project, was developed by Forest City and completed in 2007. It currently provides more than 1 million square feet of shopping, dining, workspaces and outdoor gathering places, with an additional 500,000 square feet yet to be constructed. There are plans for three hotels, one of which is currently under construction.
Michael Millar of Real Estate Communications Corp. and Randy Podolsky of Podolsky Northstar are the primary contacts for the new development.
Garden Street Lofts Delivers in Hoboken
By Andrew Deichler
Del-Sano Contracting Corp. has finished construction on Garden Street Lofts, which is poised to become Hoboken's first LEED-certified residential building.
The $16.8 million project began with a 42,888-square-foot former coconut-processing warehouse at 158 14th St. Del-Sano built a seven story, 35,054-square-foot addition, which is linked to the original facility at the fifth floor level. Garden Street Lofts includes 30 residential condominiums, which are already 50 percent sold, as well as 7,500 square feet of ground floor
retail space. The 77,942-square-foot property is in the Hudson Waterfront submarket.
Del-Sano and owner Bijou Properties LLC have put more than two years into the redevelopment, and are aiming for LEED silver certification.
"It took years of effort by some of the best and freshest minds in the industry to create a model for sustainable residential development that offers comfort, style and beauty, while being sensitive to the impact on the environment," said Larry Bijou of Bijou Properties.
Del-Sano Contracting Corp. is a member of the U.S. Green Building Council (USGBC), and specializes in LEED-registered construction projects.
In The Pipeline is a column by Senior News Editor Randyl Drummer on significant land sales, transactions and trends affecting office, industrial, flex, multifamily, mixed-use, hotel and public works developers. Send us news leads about your new project --
and sign up to be added to our distribution list to receive future In the Pipeline columns for free by e-mail.
Read previous columns.
More Land Sales and Development
Imperial Beach Redevelopment Agency acquired 0.8 acres at 735 Palm Ave. in Imperial Beach, CA, from North Island Federal Credit Union for $1.6 million. The property contains a 3,935-square-foot former North Island Credit Union Bank branch. The buyer has no immediate plans to alter the property. Dan Malcolm of Lee & Associates represented both parties. (By Dean Buenaventura, CoStar COMPS #1652529)
Newwork Real Estate has retained
Tekton Development Corp., a leading general contractor in New Jersey, for the redevelopment of the Richardson Building Lofts in Newark, NJ. The historic industrial facility will be converted into a sustainable, 67-unit apartment building. The 66,000-square-foot former jewelry factory was built in 1912 near Lincoln Park. Newwork will be seeking LEED silver certification once the $17 million renovation is complete. Tekton is a member of the U.S. Green Building Council and is committed to green building. (By Heidi Strominger)
Port of Tacoma purchased 15.68 acres at 1300 Taylor Way in Milton, WA, from Tacoma Public Utilities for $2.93 million, or about $186,900 per acre. The buyer plans to develop the vacant site for trade purposes, however details were not available. Both parties handled the deal in-house. (By Giulio Crivello Guidi, CoStar COMPS #1638630)
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