News, Notes and Comments on New Projects, Trends and Construction In the Commercial Real Estate Development and Planning Pipeline Around the U.S.
Canadian Investor to Develop Multifamily Tower Near Belltown
One of Canada's largest institutional investors has purchased a development site near Seattle's Belltown neighborhood, where it has proposed plans for a high-rise apartment tower with ground floor retail.
Investco sold 2000 Third Avenue, a 19,440-square-foot site on the edge of Seattle’s CBD, to British Columbia Investment Management Corp. (bcIMC), according to Jones Lang LaSalle’s Capital Markets team. With a global portfolio of more than $100 billion, bcIMC invests on behalf of public sector clients in British Columbia.
JLL Managing Director David Young and senior vice presidents Corey Marx and Seth Heikkila led the JLL team on behalf of the seller.
In The Pipeline
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With Seattle's economy booming due to the influx of technology, science and engineering companies, the 400-foot proposed luxury high-rise will meet the demand for urban multifamily units.
The centrally located units "will be very attractive to prospective tenants, especially with the impending arrival of Amazon’s expansion of its corporate headquarters, which is more than three million square feet and just blocks from the site," Young noted.
Mack-Cali, Fisher Close D.C. Multifamily Development Project
A joint venture of Edison, NJ-based Mack-Cali Realty Corp. (NYSE: CLI
) and Fisher Brothers has closed the acquisition of a multifamily project under construction at 701 2nd Street, NE in Washington, D.C.
The 377-unit project in the H Street submarket, first reported last month, includes about 25,000 square feet of retail space and a 309-space underground parking garage. Mack-Cali acquired a 50% interest in the project for a purchase price of about $46.5 million.
The venture has 20-year in-place debt of $100.7 million for the project expected to be completed by mid-2015, with leasing beginning in the first quarter of 2015.
The Mack-Cali/Fisher Brothers JV includes a "right of first offer" on all development deals in the D.C. metro area that involve either party, with specific qualifications on any properties in Arlington County, VA.
The venture will also form a wholly owned property and asset management platform for the branding, marketing, leasing and management of the property and any future assets acquired by the venture. Mack-Cali's Roseland subsidiary will run the day-to-day operations of the assets, including the leasing and management of 701 2nd Street, NE.
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SKS, Mitsui Fudosan America to Develop Office at 270 Brannan
SKS Partners and Mitsui Fudosan America have formed a new joint venture to develop an office building at 270 Brannan Street in San Francisco's South of Market (SOMA) district.
The new partners, including the U.S. operations of Japan’s largest real estate company, join the current owner, South Beach Partners, which will also remain in the partnership.
The 202,000-square-foot building on Brannan near Second Street in SOMA’s South Beach district has long harbored a cluster of San Francisco’s technology companies.
The building will step up from five floors along Brannan to seven floors on the north side of the site, following the contours of Rincon Hill. The joint venture is pursuing LEED Platinum certification and plans to commence construction in the second quarter of 2014 regardless of the preleasing status. Delivery is expected in the second quarter of 2015.
SKS partners in 270 Brannon include Pfau Long Architects, Pankow as the project’s general contractor, and Colliers International as the project’s leasing team.
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Downtown Site Near L.A. Live Acquired By Chinese Developer
Oceanwide Real Estate Group, a Beijing, China-based developer, has reportedly acquired a 4.5-acre site across from L.A. Live and Staples Center from New York-based Moinian Group.
Moinian development chief Oskar Brecher told CoStar News last fall that the company is divesting many properties across the country to focus on Hudson Yards, its signature project. Brecher's team oversees nearly 10 million square feet of development in the U.S.
The site was originally conceived by AEG as the second phase of its $2 billion L.A. Live project, according to Cushman & Wakefield, which marketed the property on behalf of Moinian.
The 11th and Figueroa streets property, now a parking lot, is fully entitled for a mixed-use complex called Figueroa Central, which has been on the books for prospective development since at least 2007.
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USAA, Patrinely Group Break Ground On Office Project
USAA Real Estate Co. (Realco), and its development partner, Patrinely Group, LLC, have started work on a 128,000-square-foot office project at San Antonio's WestRidge at La Cantera.
WestRidge, a new master-planned office development led by Patrinely Group, is located on La Cantera Parkway. The building is targeting LEED Silver certification with completion slated for fourth-quarter 2014.
Crimson Services, LLC, an affiliate of Patrinely Group, will oversee leasing and property management of WestRidge One. Travis Commercial Real Estate is the local listing broker on the project.
RealCo is the master developer and owner of the expansive La Cantera development. Other La Cantera developments include USAA’s 500-room resort, The Shops at La Cantera and the currently under development The Residences at La Cantera, a 322 unit residential project near The Shops.
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