CoStar News Spotlights Trends, New Projects and Construction Entering (Or Leaving) the Commercial Real Estate Development Pipeline
In this week's issue, Atlanta-based IDI delivers a 130,000-square-foot build-to-suit to Porsche America
for its training and customer service center in Pennsylvania's Lehigh Valley; Blue Springs, MO, officials are trying to move forward on the 500-acre Missouri Innovation Center,
hiring a new master developer; Quadrangle Development has delivered a 295,000-square-foot office building
in the Tysons Corner area of Vienna, VA.
In another sign of swelling demand for apartments, Prescott Realty has has leased 50% of the units in its mixed-use project The Shelby,
near Southern Methodist University in Dallas; Advance Realty has completed the first half of infrastructure work at the Riverbend District, a mixed-use brownfield project
in near the planned soccer stadium in Harrison, NJ. Plus, more development news and land sales
from around the U.S.
CoStar Group's In The Pipeline
is a column on significant land sales, transactions and trends affecting office, industrial, flex, multifamily, mixed-use, hotel and public works developers. Send us news leads about your new project -- and sign up to be added to our distribution list
to receive future In the Pipeline columns by e-mail.
Read previous columns and articles.
IDI Delivers Porsche Facility in Palmer Township, PA
Industrial Developments International (IDI) has delivered a 130,000-square-foot warehouse, office and training facility for Porsche Cars North America in Palmer Township, PA.
The new build-to-suit facility dubbed Porsche’s Northeast Retail Support Center, which held a grand opening last week, received Leadership in Energy and Environmental Design (LEED) Gold Certification for New Construction from the U.S. Green Building Council (USGBC). Porsche is the first tenant in the new Chrin Commerce Center.
The building is IDI’s first project to receive Gold certification and Porsche’s first LEED facility in the U.S. The building houses a Porsche Academy Training Center, the Area East offices and the new Northeast Parts Distribution Center.
Porsche located the facility in the Lehigh Valley area to more efficiently serve its northeast dealers as well as concentrated base of customers. The building is situated near such major highways as Interstate 78 and State Highway 33, which will significantly reduce logistics costs and shipment delivery times.
Missouri Innovation Park Gets New Master Developer
The Missouri Innovation Park at Blue Springs has hired MC Realty as the new master developer for the 500-acre bioscience research park, replacing Trammell Crow.
The Blue Springs Growth Initiative, comprised of the Blue Springs Economic Development Corp. and the city of Blue Springs, MO, is the non-profit developer of the project. The Growth Initiative announced last week that Treanor Architects, Confluence, and Olsson Associates, which previously worked on the project under Trammell Crow, are formally joining the revamped development team.
The plan calls for groupings of buildings that take advantage of sweeping golf course views and are connected by outdoor collaboration spaces. The plan also enables easy transitions between multi-disciplinary users, all supporting innovative concepts, for education, research, and manufacturing.
The Missouri Innovation Center will be anchored by a long-term collaboration with the University of Missouri, which will be its anchor research tenant under a memorandum of understanding recently signed by the Blue Springs EDC, the city and the university. The university will establish the Mizzou Innovation Center at the park to consolidate the institution's various activities in the region.
Prescott Leases Half of Apts. In Dallas Mixed-Use Project
Within 30 days of delivering The Shelby, Prescott Realty Group has leased half of the residential space in the mixed-use development in the University Crossing area near Southern Methodist University in Dallas.
The Shelby is located between Central Expressway and Greenville Avenue from Mockingbird Road to Lovers Lane. The five-story, mixed-use transit-oriented development (TOD) has two levels of covered parking with elevator access underneath the residential homes.
The 55-apartment project, with units situated directly above ground-floor retail, is within walking distance of the Mockingbird Station DART rail stop, SMU, and the new George Bush Library. Also nearby are restaurants, shops and stores.
The Twisted Root Burger Co., one of several retailers vying for the location, leased all 3,700 square feet of retail space
at The Shelby.
Dallas-based Prescott Realty has several other mixed-use projects in Dallas, including Lake Highlands Town Center.
Work Proceeds at Project Near Soccer Stadium in Harrison, NJ
Advance Realty announced that the first phase of infrastructure work is more than half complete at the Riverbend District, one of the largest mixed-use brownfield projects in New Jersey.
Construction and engineering firm Carson & Roberts, which is handling all horizontal infrastructure work at the site, is on track to complete the underground utilities, sidewalks, roadways, streetlights and traffic signals in time for the opening of Red Bull Arena in spring of 2010.
Phase I of vertical construction at the Riverbend District is scheduled to begin next year and will ultimately include more than 800,000 square feet of retail space, including an anchor grocery and retailers, a 16-screen cinema and restaurants, a 175-room hotel and a 350-room, full-service hotel with 25,000 square feet of conference space. The project will also include a wellness center, corporate and boutique office space and about 1,900 for sale and rental residential units.
The transit-oriented development is near N.J. Transit, Amtrak and a centrally located onsite PATH station that will undergo a $180 million renovation to allow easy access to Newark Penn Station. The district is also only 15 minutes by train to Manhattan and all major roadways in Northern New Jersey as well as Newark Liberty International Airport.
Quadrangle Completes 295,000-SF Office Bldg. in Vienna, VA
By Laurie Forbes
Quadrangle Development Corp. delivered 1850 Towers Crescent Plaza, a 295,000-square-foot office building in the Tysons Corner area of Vienna, VA, about 16 miles west of downtown Washington, DC. It is the only new office building to deliver in the submarket this year. Subsidiaries of Quadrangle and Promark Global Advisors, which is advised by AEW Capital Management LP, own the 13-story structure.
The trophy property was built on speculation and took a month shy of two years for completion. It is the last of four office buildings in Towers Crescent, a mixed-use development that now includes more than 1 million square feet of office space, three residential towers with nearly 900 units and 100,000 square feet of retail space.
Amenities at 1850 Towers include 14,451 square feet of ground-floor restaurant and retail space. By December, a pedestrian bridge currently under construction will connect 1850 Towers to Tysons Corner Center, a complex that includes more than 300 retailers. A Tysons Corner metro station is scheduled to deliver in 2013. SmithGroup is the architect. Jones Lang LaSalle is marketing the office space.
Ensemble Completes Auburn Medical Plaza II
Ensemble Real Estate has completed construction of Auburn Medical Plaza II, a $12.9 million medical/office development in Auburn, WA.
The three-story, 41,311-square-foot building at 121 N. Division St. is part of the Auburn Regional Medical Center campus. It features a four-story, 304-space parking garage. The property is already 75% leased.
Capital Oncology plans to occupy more than half of the facility in April 2010. The medical provider signed a 12-year lease for the entire ground floor and part of the second, totaling 24,957 square feet. Additionally, Auburn Neurological Institute has signed a seven-year lease for 3,792 square feet, and Auburn Regional Medical Center has reserved 4,056 square feet for a sleep center.
Tracy Altemus with Ensemble is currently leasing the remainder of space in the building. (By Lindsey Hicks)
City of Arlington Plans 70,000-SF Medical Office Complex
The Economic Development Authority of the City of Arlington, TX is planning the construction of a 70,000-square-foot medical office complex in south Arlington.
Texas Clinic at Arlington will cost an estimated $12 million and will be located at 400 W. Arbrook Blvd. The property will be built as part of the Chapter 380 Economic Development Program, which helps to stimulate business activity within the city.
The three-story medical office building will include an adult care center, full service imaging center, and laboratories and is scheduled to break ground in December 2009. Completion date is slated for the summer of 2011. Arlington MOB Partners, L.P. is the developer. (By Celina Chavez)
More Development News and Land Sales
Uncle Bob’s Opens New Facility in Midlothian, VA
Uncle Bob’s Self Storage, a national self-storage company, opened a new location at 3830 N. Bailey Bridge Road in Midlothian, VA. The 80,000-square-foot property delivered last month and the company celebrated its grand opening on Oct. 28th.
The new facility is a three-story, 624-unit building with storage designed for commercial customers. The building features individual door alarms, conference space for the customers, as well as retail space for moving and storage supplies. Real estate investment trust Sovran Self Storage Inc. owns and operates the property and also owns Uncle Bob’s Self Storage. (By Leah Pyle)
City of Racine Plans 80,000-SF Distribution Ctr.
The Redevelopment Authority of the City of Racine is planning the construction of an 80,000-square-foot distribution center in the Racine East Industrial submarket.
Groundbreaking is expected to occur in March 2010 with construction finishing by the end of Summer 2010. The property will add to the Southside Industrial Park and will be located behind the Modine Manufacturing Co. building. (By Matthew Myers)
Frost Bank Completes $50M Data Canter Near San Antonio
Frost Bank built a new data center at 10100 Rogers Road in San Antonio. Construction on the $50 million facility completed this quarter and the final touches are being put on the inside of the center.
The 71,013-square-foot, single-story office building was built in the Westover Hills Business Park and is a part of the San Antonio - West submarket. The new center will have 175 employees and has 168 parking spaces. Renee Sabel, the spokeswoman for Frost Bank, confirmed that construction was completed and the new center will replace multiple other locations that will no longer be needed. (By Jim Filler)
Land Purchased in San Diego
DFTC Inc. purchased the land parcel at 1606 Grand Ave. in San Diego from private investors for $2.6 million. The 0.28-acre site features a 5,854-square-foot US Bank building. US Bank has a land lease on the property that runs through 2016. The sale was the buyer’s up leg in a 1031 exchange.
Tim Mills of Cushman and Wakefield represented the seller, while Alexander Mickle of AVM Properties represented the buyer. (By Micah Horowitz, CoStar COMPS #1792721)
Pelliteri Buys Land for Expansion in Madison, WI
Pelliteri Waste Systems Inc. purchased the land at 4002, 4030 and 4058 Kipp St. in Madison, WI, from the Gallina Cos. for $1.36 million, or about $172,000 per acre.
Gallina outfitted the 7.9-acre parcel to be suitable for industrial usage. Pelliteri Waste Systems plans to use the land to expand its business. Blake George of Lee & Associates brokered both sides of the deal. (By Matthew Myers, CoStar COMPS #1805368)
Harris Acquires Land for Future Bank in West Bend
Harris Bankcorp Inc. purchased 1.26 acres of land in West Bend, WI, from Pranke Holding for $1.1 million, or about $881,000 per acre. Harris Bankcorp plans to use land for a new bank building, due to be completed in March 2010.
Thomas Treder of Commercial Property Associates Inc. represented the seller. John Kardelis of CB Richard Ellis represented the buyer. (By Matthew Myers, CoStar COMPS #1799816)