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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CT Gov. Defends Plan to Relocate Hedge Fund to Stamford
Hedge fund Bridgewater Associates' decision to build a $750 million corporate headquarters in the Harbor Point development along the Stamford, CT, waterfront will include state economic development assistance, including a forgivable construction loan and up to $90 million in tax credits and other incentives.
The deal has taken some flak. Stamford residents and other opponents have called the transaction a giveaway to the $130 billion Bridgewater, one of the world's largest hedge funds, and are concerned about the future of a historic boatyard at the site. Representatives of Bridgeport, CT, say the economically strapped city could benefit more from the jobs than Stamford.
In Bloomberg Television this week, Connecticut Gov. Dannel Malloy called the deal "a home run," noting that Bridgewater would spend $750 million to build the new 750,000-square-foot campus and that the project would bring up to 1,000 high-level jobs within a decade in addition to retaining the 1,225 existing employees.
Connecticut has traditionally been home to a number of hedge fund managers due to lower taxes and closer proximity to housing than Manhattan, where most Wall Street firms are based. However, many Wall Street firms are cutting jobs and other costs, potentially opening the door wider to Connecticut as a relocation option for some firms.
Malloy told Bloomberg TV the deal "will pay for itself. Not overnight, but pretty close."
Bridgewater's goal is to consolidate its employees in Westport, CT now spread among five office buildings in the area.
Construction on the 750,000-square-foot facility is expected to be completed by 2017 and include plans to produce a campus and build two sustainable buildings.
Seagate Agrees to Buy Solyndra Property For $90.3M
Bankrupt solar panel maker Solyndra LLC has agree to sell its former headquarters and manufacturing plant to storage media maker Seagate Technology Plc for $90.3 million, according to U.S. Bankruptcy Court documents.
As reported by CoStar in February, Solyndra hired Jones Lang LaSalle Inc. to market the property at 47488 Kato Road, in Fremont, CA.
JLL formally marketed the $300 million property built in early March 2012 and distributed the property on its
global property network with specific emphasis the high-tech manufacturing sector. providing the marketing information to tens of thousands of CRE brokers throughout the world through CoStar, LoopNet and broker blasts, according to the filing.
The property drew interest from U.S., Chinese and European companies involved in solar energy, medical-related products, data centers and other technologies that need a clean manufacturing environment, court documents said.
Seagate came in with an offer that will function as a "stalking horse" bid or an initial bid that could be topped by a competing offer of at least $1 million more at auction.
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Developer Emery Moves Dirt In Cool Springs
Spectrum Properties and developer Pat Emery have broken ground on Franklin Park, a 71-acre office, retail and residential project at McEwen and I-65 in Cool Springs, TN.
The mixed-use project will include up to five office towers, on-site apartments and retail. Construction is beginning with 11 acres of green parkland central to the development, including an outdoor amphitheater, waterways and other features.
The parkland is the first phase of Franklin Park’s development. It was designed by HGOR Planners & Landscape Architects of Atlanta, Ga., and Duda Paine Architects of Durham, N.C.
The new office towers will be designed to accommodate Fortune 500 companies and businesses within the financial, legal, insurance, healthcare and technology industries.
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Subaru To Expand Into NFI Park In Florence
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.
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Wood Partners Breaks Ground on Downtown Seattle High-Rise Apartments
Wood Partners broke ground on a new 223,500-square-foot, high-rise apartment building in Seattle's Belltown/Denny Regrade submarket.
The 27-story building will include an additional six subterranean parking levels, around 4,000 square feet of ground-level commercial/retail space
, and 298 units. The project is expected to deliver at 225 Cedar Street.
Prudential is acting as the equity partner on the project while JPM Chase is the lender. The project architect is Seattle-based Hewitt and the general contractor is Andersen Construction, which has offices in Seattle, Portland, and Boise.(By Benjamin Johannes)