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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Campus Crest Announces Trio of Student Housing Projects
Campus Crest Communities, Inc. (NYSE:CCG
) has announced that work is under way on campus housing developments at Colorado State University in Ft. Collins, CO, Ball State University in Muncie, IN, and The University of Oklahoma in Norman, OK.
The three projects are expected to be delivered for the 2013/2014 academic year and have total estimated project costs of $82.5 million. The Ft. Collins and Muncie properties are wholly-owned by Campus Crest, while the Norman property is being developed in a joint venture with Harrison Street Real Estate. Campus Crest will own 20% of the Norman project.
"These are the first three projects of this year’s development pipeline. They are located an average of approximately 0.2 miles from campus and represent our ninth generation project prototype, which among other things has a higher average bed count than the existing portfolio," said Ted W. Rollins, co-chairman and CEO of Campus Crest Communities.
The Grove at Ft. Collins is located on land owned by Colorado State University and is the first fully-amenitized housing option on campus in the market.
The Grove at Muncie, IN is adjacent to Ball State University and will be the first student housing project in the market that provides lifestyle-focused management and resort-style amenities. The Grove at Norman, OK is within easy access to the University of Oklahoma campus.
The company and the joint venture have closed on a total of $52.1 million of construction financings at an average spread of 238 basis points over LIBOR for the three newly announced projects. The company intends to finance its share of the remaining construction costs through its revolving credit facility.
Apple Buys Land for Expansion in Austin
Apple Inc. purchased three parcels totaling about 40 acres from McShane Development Co. LLC last month for 1 million-square-foot operations center in northwest Austin, according to county records
Plans for the $300 million expansion are on the fast track, according to a Cadence McShane Construction executive quoted by the Austin Business Journal. The Chicago-based affiliate of Dallas-based Cadence Cos will reportedly build the office complex near Parmer Lane and Delcour Drive which will be owned and occupied by Apple, with construction beginning as soon as this fall.
Bids from subcontractors will be solicited in August, the McShane executive told the Austin Business Journal.
Downtown One Loudoun Breaks Ground
A joint venture of Miller and Smith and North America Sekisui House LLC has broken ground on the first phase of the new Downtown One Loudoun, a mixed-use development a 358-acre master-planned community in Loudoun County, VA.
The phase includes 210,000 square feet of retail, restaurant and office space, including an Alamo Drafthouse Cinema scheduled to open in 2013. More than 100,000 square feet of mixed-use space is planned for LEED certification.
The second phase is slated to include a hotel, additional shops and offices, luxury townhomes and multifamily residences. Downtown One Loudoun is planned for nearly 1 million square feet of mixed-use development at build out.
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Bernards To Complete 156-Unit Apt. Project In Irvine
Beverly Hills-based New Pacific Realty Corp. has awarded a construction contract to commercial builder Bernards for Carlyle at Colton Plaza, an apartment project in Irvine, CA.
Developer and owner New Pacific Realty, a real estate investment and development firm focused on value-add opportunities, acquired the project in 2009 from a lender which foreclosed on the previous ownership.
"This is yet another example of a developer rescuing a casualty of the financial shut down before the asset deteriorated," said Steve Pellegren, Bernards vice president for preconstruction services.
The project near John Wayne Airport is designed by Los Angeles-based KTGY Group, Inc. The project is scheduled for completion in summer of 2013.
Construction Begins On New Tyler Technologies HQ in Plano
KDC broke ground on the 142,000-square-foot corporate and division headquarters for software maker Tyler Technologies, Inc.
KDC will develop and manage the construction of Tyler’s new 26-acre campus project. The new headquarters will be located at 5101 Tennyson Parkway, the former site of the Plano Family YMCA, in the Legacy Business Park in Plano.
Tyler, which focuses on producing software for the public sector, plans to consolidate all staff from its Courts & Justice Division at 6500 International Parkway in Plano, and its existing corporate headquarters, at 5949 Sherry Lane in Dallas, into the new corporate office next year.
Tyler’s 26-acre Plano headquarters campus will include a new, 82,000-square-foot, three-story office building
connected by a transparent ground-level walkway to the 60,000-square-foot, two-story former YMCA building. Construction is slated for completion in August 2013.
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Kohl's Planning Second Corporate Campus in Wisconsin
By Mark Heschmeyer
Kohl's Department Stores will assume ownership of 100 acres of vacant land in the Woodland Prime office park in Menomonee Falls, WI, and will also acquire a small office building adjacent to the vacant land.
In exchange for the building and land, Menomonee Falls will assume ownership of Kohl's 530,000-square-foot former distribution center at N54 W13901 Woodale Drive in Menomonee Falls. The transaction is expected to close this fall.
Kohl's plans to develop office space on the land to serve as a second corporate campus to support the company's long-term business growth.
Over the last decade, Kohl's has continued to experience growth in sales and net income, as well as add jobs nationally and locally - including nearly 3,000 corporate positions in Menomonee Falls.
For up to three years following the closing of the property exchange, Kohl's can elect to develop the vacant land as incremental office space. Following the development of a second campus, Kohl's plans to continue operating its current headquarters at N56 W17000 Ridgewood Drive and credit service center at N54 W13600 Woodale Drive in Menomonee Falls.
The Wisconsin Economic Development Corp. will create an Enterprise Zone to provide up to $62.5 million in tax credits from the state of Wisconsin over 12 years to support Kohl's growth.
Upon Kohl's election to begin construction, the Village of Menomonee Falls will provide the necessary road improvements and up to $12 million, payable over several years, from the incremental tax revenue to be generated by the Kohl's development.
Skanska Awarded Gaillard Auditorium Contract
The City of Charleston, SC, has awarded a $110 million contract to a joint venture of Skanska and Trident Construction for renovation and new construction at the Gaillard Municipal Auditorium.
Skanska’s share of the contract is 70%, totaling about $77 million, which will be included in order bookings for Skanska USA Building for the third quarter of 2012.
The Gaillard Center project includes the addition of a 1,800-seat multi-purpose auditorium, an exhibit hall and a new three-story municipal office building for city employees. According to the city’s mayor, this will be the largest construction project in the city’s history.
The project will begin in August and is slated for completion in December 2014, and will seek LEED Silver certification.