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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CBRE Helps Baylor Healthcare Open Hospital
CBRE Healthcare Services has completed the ground-up development, design, construction oversight and ongoing facility management of Baylor Health Care System’s newest facility, a 470,000-square-foot community hospital in McKinney, TX.
Baylor Medical Center at McKinney opened in early July at the northwest corner of Highway 380 and Lake Forest Drive and features a 95-bed full-service hospital and adjacent medical office building
(MOB). The facility is in the process of becoming LEED certified.
Following a spring 2010 groundbreaking, CBRE and key Baylor partners were able to complete the project within a two-year timeframe, while coming in significantly under budget.
"Given the size and complexity of this project, as well as the level of importance and visibility to our client - one that we have had an exceptionally fruitful 12-plus-year relationship with - we are extremely proud of the extraordinary results," said Jeff Cox, CBRE Alliance Director for the Baylor Health Care System account.
The CBRE team was also able to incorporate several project enhancements that hadn’t been called for in the initial plans, including the addition of two procedural units allowing the campus to open with five operating rooms instead of three, and extra capacity for Baylor to expand certain procedural services as needed.
CBRE Healthcare Services’ Integrated Project Delivery Team members Michael Barksdale, Brandon Castille, Casey Dillon and Doug Gordon, as well as members of the account team’s Facilities/Engineering/Energy, Transactions, Campus Planning and Communications service lines, helped deliver the project.
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Simon Properties Starts Parkside Project
Simon Property Group Inc. (NYSE: SPG
) recently kicked off construction of Parkside, the next phase of Firewheel Town Center, a mixed-use development in Garland, TX.
The 281-unit Parkside follows the existing apartment and townhome project at the center and is expected to be completed by December 2013, with occupancy starting in September. Columbus Realty Partners Ltd. is the lead developer while Lincoln Property Group will oversee the property's leasing and management of the Center.
Firewheel Town Center is a street-style shopping, dining and entertainment center. The latest phase is likely to help Simon Property capitalize on the continuous growth opportunities in the Garland market
Earlier in the second quarter 2012, Simon Property started construction work on St. Louis Premium Outlet in Chesterfield, MI. The company owns a 60% ownership stake in the joint venture project.
The first phase of the project would include 85 stores totaling 350,000 square feet and is expected to open in the fall of 2013. Indianapolis-based Simon Property has 25 redevelopment and expansion projects in the U.S. and two properties in Japan.
CapLease Enters into $20M BTS Deal In Ashland
CapLease, Inc. has entered into a build-to-suit deal to construct a 311,730-square-foot-distribution warehouse in Ashland, VA, outside of Richmond for Vitamin Shoppe Industries, Inc.
The company has entered into a 15-year net lease which will commence upon completion of construction. Caplease has acquired the 43-acre land site and entered into a development agreement with a large Southeast based developer.
Construction is expected to begin immediately and be completed during the early part of the second quarter of 2013. When complete, Caplease's total investment is expected to be about $20 million and its average capitalization rate will be approximately 8% over the 15 year lease term.
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SL Green to Develop Pace University Dorms
SL Green Realty Corp. (NYSE: SLG
) has formed a joint venture with Harel Insurance and Finance and the Naftali Group to develop a dormitory tower for Pace University at 33 Beekman Street in downtown Manhattan.
The partnership acquired the fee interest in the planned development site, which faces Beekman and William streets in the middle of the Pace downtown campus area, and will develop a 30-story building.
Upon completion, the partnership will convey a long-term ground lease condominium interest in the building to Pace University for student housing together with ground floor school-related space.
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Facebook Unveils Menlo Park Campus Expansion
Facebook has lifted the veil on the design for its new Menlo Park, CA campus headquarters building, designed by famed architect Frank Gehry.
The social networking company plans to begin the approval process in early 2013 on the new building on its 22-acre West Campus site on Bayfront Expressway, acquired from Tyco Electronics. When completed, it will provide a workspace for Facebook's 2,800 engineers, according to a post on the site by Everett Katigbak, Facebook's environmental design manager.
The new building will be a large, one room structure that somewhat resembles a warehouse, where true to Facebook culture, employees will sit out in the open with desks that can be quickly shuffled around as teams form and break apart around projects. There will be cafes and micro-kitchens and break-away spaces with couches and whiteboards, Katigbak said.
"The raw, unfinished look of our buildings means we can construct them quickly and with a big emphasis on being eco-friendly. Of course, we’ll maintain our current campus and use an underground tunnel to connect the two," Katigbak said in the post.
Walpole Park Spec Warehouse Park Fills Up As New Leases Signed
Walpole Park South Building 8, a newly constructed speculative office and warehouse building in Walpole, MA, is 92% occupied after the signing of several leases totaling more than 100,000 square feet.
NAI Hunneman’s Catherine Minnerly, executive vice president and principal, and Ovar Osvold, associate, represented the property owner in leases totaling 107,470 square feet to CertiFit Inc., PSS World Medical and Keefe Commissary Network.
CertiFit, a national auto parts store, will occupy 29,622 square feet at Walpole Park South 8, delivered for occupancy in April and the only speculative warehouse building project launched in Massachusetts in 2011. Minnerly and Osvold represented the landlord and procured the tenant in the transaction.
PSS World Medical, a leading national distributor of medical supplies and equipment to office-based physicians and long-term health care providers, signed for 47,606 square feet at the building. Shirley Smith of Tampa, Fla.-based Pointline Inc. represented PSS World Medical in the lease negotiation.
Foundry Row Gets Green Light From Baltimore County
The Baltimore County Council approved rezoning for the vacant Solo Cup factory site to make way for Foundry Row, a $140 million mixed-use project anchored by a Wegmans grocery store.
Brian Gibbons, chairman and CEO of Greenberg Gibbons, the project’s developer in conjunction with another local firm, Vanguard Equities, called the 6-1 vote "a major breakthrough for the Greater Owings Mills community."
The developers expect the Foundry Row project to serve as a retail catalyst leading to new economic development and job opportunities. The project will create 2,300 construction jobs and 3,100 permanent jobs.
Foundry Row is projected to generate $12 million in new annual tax revenues for Baltimore County and the state. Plus, the developer will pay for $7 million of road improvements, including the intersection of Reisterstown Road and Painters Mill Road.