News and Notes on Trends, New Projects and Construction In the Commercial Real Estate Development Pipeline Around the U.S.
In The Pipeline
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Greetings From Asbury Park: Land Swap Will Speed Redevelopment of Fabled NJ Waterfront
The cleaning up and redevelopment of the storied Asbury Park, NJ, beachfront has gotten a boost from an agreement between two developers that will free up two key undeveloped parcels totaling 5.7 acres.
Asbury Partners, a subsidiary of iStar Financial acting as master developer of the waterfront, announced that retail developer Madison Marquette has agreed to contribute all of its 5.7 acres of residential land in the redevelopment area.
The move gives full control of its residential development to iStar Financial, in exchange for Madison Marquette receiving a minority interest Asbury Partners.
The agreement provides the opportunity for two of the largest developers and landholders in Asbury Park to combine resources and work together to improve the entire waterfront, immortalized in song starting in the early 1970s by rocker Bruce Springsteen.
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Clarius Partners To Build 2.47 Mil-Sq-Ft Industrial Park in Joliet
Clarius Partners, LLC announced it has broken ground on the $70 million Clarius Park Joliet project, an industrial business park on Youngs Road in Joliet, IL.
The first building, a 1 million-square-foot facility, is under construction on speculation at the development on a 185-acre infill land site which will eventually include four industrial facilities totaling 2.47 million square feet.
The first phase of infrastructure has been recently completed for the speculative development close to the I-55 and I-80 interchange and the BNSF and UP intermodal facilities.
The project helps fill a growing demand for well-located, accessible and large industrial space
by companies servicing local, regional and national warehousing and distribution.
"On a national level, Chicago factors into almost every large industrial user’s logistics model due to its large population, geographic centrality and the fact that all Class 1 rail lines converge in Chicago," said Kevin D. Matzke, managing principal of Clarius Partners, adding the project also makes sense on a regional and local level.
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Freightquote to Move Headquarters From Kansas to KC
To prepare for future expansion, Freightquote is moving its headquarters from Lenexa, KS, to a new 200,000-square-foot location across the state border 12 miles away in Kansas City, MO.
Groundbreaking on the new $44 million building for the freight shipping company is scheduled for later this month, and the expected move-in is late May 2013, according to statements from the company and Missouri Gov. Jay Nixon's office.
The company will reportedly move to 30 acres near St. Joseph Medical Center in the vicinity of Interstate 435 and State Line Road.
In addition to the 1,225 company jobs added in Missouri within the next three years, an additional 125 new Missouri jobs in the fourth year will bring the company's total employment in the Show-Me State to 1,350.
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R.D. Olson Begins Hotel-Retail Project In Tustin
R.D. Olson Development has broken ground on the $60 million Tustin Pacific Center, a 196,000-square-foot mixed-use hotel and retail development in Tustin, CA.
The project on the 55 Freeway at Edinger Avenue includes a 149-room, four-story Residence Inn by Marriott and a 145-room Fairfield Inn & Suites by Marriott, also four stories, as well as a 16,180-square-foot retail center that will include a mix of restaurants and business services users.
The hotels, which Olson said are the first to be built in Tustin in 15 years, include the first rollout in California of the latest design prototypes by Marriott for both the extended-stay Residence Inn and the mid-tier Fairfield brands.
"This project will serve the Tustin business community and surrounding areas, including the Irvine Business Complex and the Santa Ana Civic Center," said Bob Olson, CEO and founder of R.D. Olson Development.
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Resmark, Greystone To Build 370-Unit Apt Project
Resmark Apartment Living, in joint venture with Greystar, announced plans for a 370-residence apartment development on just under 14 acres in the Desert Ridge master-planned community in Phoenix.
Construction is expected to begin in September. The project on the northeast corner of Deer Valley Drive and 56th Street will include 10 buildings ranging from two to four stories tied together with outdoor gathering spaces and amenities.
Greystar manages 50 apartment communities totaling more than 14,000 units in the greater Phoenix area and owns about 1,400 units. The project is Resmark’s first apartment investment in Phoenix. The company previously invested in five single-family home communities in the area with various homebuilder partners.
"There has been little new apartment development in recent years to meet the current rise in demand, particularly evident in the northeastern area of Phoenix," said Jerry Brand, senior managing director of Greystar. The project will be within walking distance of Desert Ridge Marketplace, an open-air retail center, and the JW Marriott Desert Ridge golf course and spa.
Red Ventures Expanding In Indian Land
Technology firm Red Ventures announced that it has acquired 16 acres next to its Indian Land, SC, headquarters in Lancaster County, where it expected to expand and generate 1,000 new jobs over the next five years.
Red Ventures a technology company that provides marketing and sales support to companies, currently owns 17 acres at its 150,000-square-foot campus at 521 Corporate Center Park. The company will use the new land to expand its campus, with development on its third building expected to begin by the end of the year.
The company employed 300 people when it moved to South Carolina in 2009 and is now approaching 1,000 employees. Red Ventures employs a total of 1,500 across its locations in Miami, San Antonio, Indian Land, SC, and Wilmington, NC.
Opus Group To Build Warehouse For Maxzone
Opus Development Corp. will develop and build a 223,488-square-foot build-to-suit industrial warehouse for Maxzone Vehicle Lighting Corp. on 11.3 acres in the Oakview Corporate Park in West Dundee, IL.
The industrial facility will include 3,000 square feet of office space, 20 truck docks, two drive-in doors and ample parking for employees and customers.
Construction begins this month with completion slated for the end of the year. Opus Development will construct the facility and Opus AE Group is the architect.
Broker representatives for this transaction were Eric Chang with US Asia Investment Group on behalf of Maxzone, and Noel Liston from Darwin Reality and Development Corp. representing The Opus Group.
Pike 3400 Project Secures $92M Construction Loan
The Penrose Group has secured $92 million of equity and debt financing for construction of Pike 3400, a 257-unit apartment project in Arlington, VA.
Pike 3400, at Columbia Pike and Glebe Road, is set to deliver in April 2014. The project includes 15,000 square feet of ground-floor retail, pool, rooftop entertainment space and a dog park.
In addition to the apartment building, The Penrose Group will also build 44 finished townhome lots on the southern portion of the site which have been pre-sold to a national homebuilder.
David Webb, senior managing director of Cassidy Turley, and Jamie Butler, associate vice president, arranged the financing on behalf of The Penrose Group.