News and Notes on Trends, New Projects and Construction In the Commercial Real Estate Development Pipeline Around the U.S.
In The Pipeline is a column on significant acquisitions of commercial
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ACC Begins Student Housing Project at Drexel University
American Campus Communities (NYSE:
ACC) will break ground Feb. 21 on a 361,200-square-foot student housing and retail project at Drexel University on Chestnut Street between 32nd and 33rd streets in Philadelphia.
The $97.6 million project, which includes 860 beds, is targeted for completion by September 2013, according to Drexel University President John A. Fry. Under ACC's development program, the company will develop, own and manage the project through a 70-year ground lease and make annual ground rent payments to Drexel.
Bill Bayless, American Campus CEO, cited the project as an example of a university benefiting from private-sector investment to deliver student housing while preserving the institution's own debt capacity for core capital projects.
The glass-and-limestone development designed by Robert A.M. Stern Architects will include two eight-story buildings fronting Chestnut Street while maintaining a corridor to the adjacent Creese Student Center. The design also includes a 19-story residential tower at Chestnut and 32nd streets, a community center, lounge and fitness center.
The two-story street-level space will feature retail outlets, restaurants and a new corner entry into the Barnes and Noble. Upper floors feature student apartments with both shared and private units.
$92M Cruise Terminal For America's Cup Events Gets Off the Line In San Francisco
Construction has begun on the Port of San Francisco's long-awaited 88,000-square-foot cruise terminal at Pier 27, quickly following the Board of Supervisors approval of an environmental report on the terminal and events related to the 34th America’s Cup events to be held in the city this year and in 2013.
San Francisco Mayor Edwin M. Lee said the James R. Herman Cruise Terminal is a key port infrastructure project to host the prestigious 160-year-old yacht racing event, which will bring thousands of jobs and nearly $1 billion in economic impact for the visitor, hospitality, construction and transportation industries.
Moreover, the terminal, in the planning stages since September 2007, provides a gateway to San Francisco for cruise passengers befitting the city as a world class destination, said San Francisco Port Commission President Doreen Woo Ho. The cruise industry in San Francisco generated almost $40 million in 2011.
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Cassidy Turley to Provide Leasing for Large D.C. Development
Property Group Partners has tapped Cassidy Turley to provide exclusive leasing services for the so-called I-395 Air Rights Development, a seven-acre site covering three city blocks in downtown Washington, D.C.
The master-planned development will unfold over several phases totaling about 2.2 million square feet of commercial space on the largest continuous undeveloped site in downtown D.C. It will focus on office space, eventually including four office buildings, one residential structure, ground-floor retail and enclosed parking.
Property Group Partners will build the project on a platform over a recessed portion of U.S. I-395 that is bordered by Massachusetts Avenue to the north, E Street to the south, Third Street to the west and Second Street to the east.
Cassidy Turley's Art Santry, Zeke Dodson, Phillip Thomas, Laurie McMahon and Will Stern will represent Property Group Partners.
An official name for the development will be unveiled in coming weeks. It will likely become the first U.S. Green Building Council LEED Platinum certified urban air rights development in the U.S.
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Newmark Merrill Plans Repositioning For Twin Peaks Mall
NewMark Merrill Mountain States has acquired Twin Peaks Mall in Longmont, CO, about 40 miles north of Denver, and will reposition and rebrand the property with a redevelopment of up to $50 million.
Privately held NewMark Merrill has been managing the 555,000-square-foot enclosed mall on Highway 119 and Hover Road since October 2010 on behalf of its previous owner, The Panattoni Co.
Allen Ginsborg, managing director and principal, said the strategic repositioning costing between $25 million and $50 million will include more high-quality shopping, dining, and entertainment tenants. The mall is anchored by Dillard’s department store and United Artists Theatres. Popular specialty stores include Bath & Body Works, Game Stop, Kay Jewelers, Victoria’s Secret and Zales.
Ginsborg negotiated the transaction with the principals at Panattoni Company and Bank of America, the lender for the project, with Ross Carpenter of NewMark Merrill conducting due diligence and underwriting.
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MRP Realty, JBG To Partner For Potomac Yard Project
Washington, D.C. developers MRP Realty and The JBG Companies announced a joint venture to develop The Exchange at Potomac Yard, a 1.9 million-square-foot mixed-use project at the site of what was once among the busiest rail yards on the East Coast.
PRP Realty, which recently announced a JV with Rockpoint Group LLC will break ground on an
office building in the Penn Quarter, said construction of the first 323 units of the residential portion of the 17-acre Exchange five miles south of Washington along Route 1 in Virginia is scheduled to start in the second quarter. Work on the development’s infrastructure began in December.
The development, which bridges Arlington and Alexandria, includes a planned town center with about 800,000 square feet of office and hotel space, two hotels offering a combined 625 rooms; 534 residences, and about 100,000 square feet of retail.
The Potomac Yard is a 167-acre project expected to bring 1.8 million square feet of office development, 325,000 square feet of retail, nearly 1,700 units of residential and 300 hotel rooms over the next several years, along with a future Metro stop. MRP is among several developers expected to build out the project.
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Behringer Harvard Expands Allegro Apartment Project
Behringer Harvard has started the second phase of its Allegro development near Dallas, adding 121 apartments on 1.2 acres near the original 272 units in the community's first phase.
The real estate investment company acquired Allegro, located at 15750 Spectrum Drive in Addison Circle, a 70-acre mixed-use development fronting Dallas Parkway, in December 2010.
Allegro includes resort-style amenities such as private pool cabanas, a games deck, fitness center and tanning bed.
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