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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Trammell Crow, Principal Launch $1B Development Program
Principal Real Estate Investors and Trammell Crow Co. have paired up again to establish a national development program to develop $1 billion in office and industrial buildings in targeted markets throughout the U.S.
Under the program, Trammell Crow will co-invest with Principal Real Estate Investors in the projects to be developed and provide all development services. The venture recently closed on its first deal, acquiring an 11.6-acre tract of land at 16325 S. Avalon Blvd. in Carson, CA, where it plans to build Avalon Industrial Center, a Class A industrial building.
In 2006, Principal Real Estate Investors, one of the largest managers of institutional real estate assets in the U.S., and Dallas-based Trammell Crow, among the nation’s largest developers and investors, entered into a similar JV that focused solely on the development of Class A office buildings. The venture ultimately included the development of One Legacy Circle in Plano, TX and Hess Tower and Energy Center I and II, in Houston, among others.
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"As the economic recovery in the U.S. continues to advance, we expect the high quality office and industrial facilities that this joint venture will produce to be in high demand from both tenants and prospective buyers," said Rod Vogel, managing director - equity production at Principal Real Estate Investors.
The program is positioned to create considerable value for Trammell Crow and Principal "by leveraging TCC’s development professionals to take advantage of improving real estate markets around the country," said Mark Allyn, senior managing director with Trammell Crow, who oversees the company’s investment programs.
"Our first program was very successful and we anticipate this expanded initiative will be equally so," Allyn said.
Principal Real Estate Investors manages or sub advises $38.4 billion in CRE assets, including both public and private equity and debt investment alternatives. Principal Real Estate is the property arm of Principal Global Investors, a diversified asset management firm and a member of the Principal Financial Group.
MRP Realty-Rockpoint Venture to Break Ground at 900 G St
In the face of somewhat weakening market for Washington, D.C. office space, a joint venture of MRP Realty and Rockpoint Group, L.L.C. will break ground on a nine-story, 112,000-square-foot
office building 900 G Street NW in the Penn Quarter submarket this summer.
The building on the southwest corner of 9th and G Street NW will include glass curtain wall and target LEED Gold construction. The project will include nine-foot finished ceilings on floors two through seven, with 10-foot ceilings on penthouse levels.
The project is next to the low-rise National Portrait Gallery and Martin Luther King Memorial Library, providing for views of the Capitol and the Mall.
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Uniscite Announces $70M Facility in S. Carolina
Uniscite Inc. announced plans to locate its new operations in Laurens County, SC. The $70 million construction project will begin the process of hiring 100 new employees by 2013, according to Zhangh Long Pen, Uniscite president.
Uniscite, a manufacturer of plastic film used in packaging for food products, is currently operating out of offices in Greenville, SC. The firm will construct a new greenfield plant with new machinery to manufacture products at what the company calls an exceptionally fast pace.
The company will begin hiring for new positions in 2013 and expects to be fully operational by the first quarter of 2014. Fang Wang, general manager, said the firm chose Laurens County because of its “excellent business environment and ready and available work force."
CoSentry to Build $32M Data Center Near KC
Technology service provider CoSentry will build a new $31.6 million data center in Lenexa, KS, creating more than 60 jobs.
CoSentry, which provides data center, cloud computing and managed technical services, will purchase 57,517 square feet at 14500 W. 105th St. in the Kansas City suburb. Construction is expected to begin in February.
The Omaha, NE-based company chose the Kansas City region after a two-year analysis of 21 markets that weighed business climate, incentives and power costs, said Doug West, vice president and general manager for CoSentry's south region.
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Inland On Track to Finish ASU Student Housing In August
Inland American Communities Group, Inc. expects to complete the first phase of Innovation Academic Village, an on-campus housing community and dining facility on Arizona State University’s (ASU) Polytechnic Campus in Mesa, AZ, by next fall.
The facility will be near the newly constructed Student Recreation Center and recreational sports fields. Construction of the $13.5 million housing project began July and is on schedule to open for the fall 2012 semester.
The 318-bed facility in an 85,000-square-foot, three-story structure will be on property ground leased from ASU. The project will ultimately provide housing for 1,200 students. The initial phase includes the development of a new $8 million, 20,000-square-foot dining facility owned by ASU and operated for ASU by Aramark.
Santa Clara Parcel Targeted for Assisted Living Sold
The City of Santa Clara Housing Authority purchased the 5.98-acre vacant parcel at 1906 Worthington Circle in Santa Clara, CA, from the California Department of General Services for $11.66 million, or about $1.9 million per acre. The buyer will develop an assisted living facility at the site.
The vacant parcel is fully entitled for the development of a multifamily senior housing development, which totals 165 units. The buyer and seller represented themselves in the transaction
Please refer to CoStar COMPS #2245029 for additional information on this transaction.