CoStar compiles news of corporate expansions, relocations and lease extensions in the weekly Lease Up news report, a concise read keeping you updated on major corporate moves affecting commercial real estate. For news on consolidatations and lease cancellations, check out CoStar's weekly Lease Down report.
In this week's issue:
Caterpillar expands in Texas
Great Dane Trailers plans a new facility in Georgia
Amazon opens another facility in Phoenix
Access moves its HQ
Amonix signs for 214,000 SF in Vegas
ACE renews and expands in Chicago
Caterpillar Continues Expansion, Now in Texas
Last week,
Lease Up reported on Caterpillar's
expansion plans in North Carolina and South Dakota. Now the construction equipment giant is setting its sites on Texas.
Caterpillar is planning a new 600,000-square-foot manufacturing facility in Victoria that promises to create more than 500 jobs for the region.
The $150 million plant begins construction in September, with production slated for mid-2012. Caterpillar expects to triple its manufacture of hydraulic excavators in the United States once the facility is fully operational.
Caterpillar's decision to expand in Victoria stemmed largely from the efforts of the Victoria Economic Development Corp. (VEDC). The construction equipment manufacutrer is building its facility at the 320-acre Lone Tree Business Center, which VEDC acquired in 2002. Caterpillar benefits from the $5.5 million in infrastructure improvements that local community has already contributed to the business center, and will receive $2 million for additional infrastructure, said Dale Fowler, president of VEDC.
Caterpillar is also being offered $1.175 million from the Texas Enterprise Fund, as well as $250,000 from the Texas Department of Transportation, should a traffic device is installed. Also very likely is a 10-year, 100% tax abatement for improvements.
Victoria was also an attractive option for Caterpillar due to its proximity to the company's supply base, access to ports and other transportation and Texas' positive business climate, said Caterpillar's Gary Stampanato, vice president with responsibility for excavators. He added that the new facility would "play an important role" in Caterpillar's long-term strategy to remain at the top of the excavator industry, providing customers worldwide with products and solutions.
Caterpillar's current production of excavators in the United States is conducted at a facility in Aurora, IL. Excavators are also produced at the company's plants in Belgium, Brazil, China, France, Indonesia, Japan and Russia. The Victoria plant will produce both models that Caterpillar manufactures in Aurora, as well as several other ones currently built in Japan. The company is also planning to quadruple production at its facility in China.
"We are making a number of these long-term investments in our global excavator business so that we are appropriately positioned to support Caterpillar’s corporate strategy," said Rich Lavin, Caterpillar's president with responsibility for construction industries.
Great Dane Plans 450,000-SF Plant in Georgia
Great Dane Trailers said Monday that it has selected Statesboro, GA, as the location of its new refrigerated trailer plant. The trailer manufacturer is investing $33.5 million in the new facility, which should create more than 400 jobs over the next four years.
Great Dane signed a 20-year lease with the Development Authority of Bulloch County for a 118-acre site at the Gateway Regional Industrial Park. The new 450,000-square-foot plant is scheduled to break ground next year, with delivery slated for 2012. The facility will have the capacity to produce more than 5,000 trailers per year.
The facility brings Great Dane's manufacturing operations back to Georgia. The company was founded in Savannah and maintains its one of its division offices there, along with its sales, marketing, engineering and R&D center. However, its Savannah manufacturing plant closed in 2009.
"Choosing to build our new plant in the state of Georgia offered Great Dane the prime Southeast location necessary to more efficiently serve our customers in this region," said Phill Pines, president and COO for Great Dane. The company settled on Statesboro after a yearlong search, Pines noted.
Great Dane received assistance from Georgia Department of Economic Development (GDEcD) Statewide Project Manager Chris Pumphrey in the expansion.
The company received a total of $13.76 million state incentives, which includes $8 million in job tax credits (contingent on job creation), a $1.26 million sales & use tax exemption, a $2.5 million port tax credit and employee training through Georgia Quick Start, a $2 million value.
Amazon Leases 1.2 Million SF in Phoenix
By David Whitmore
Amazon.com Inc. has signed a 127-month lease for a 1.2 million-square-foot facility in the Riverside Industrial Center in Phoenix. The online retailer is expected to take occupancy in December. Financial terms of the transaction were not disclosed.
This will be Amazon's third distribution center in the Phoenix metro area. Company Spokesperson Mary Osako said that Amazon is planning to hire several hundred employees at the new facility.
Located at 4750 - 5050 W. Mohave St., the massive distribution building was built in 2008 and features 255 loading docks, eight drive-in bays, 36-foot clear height, and 3,600 amps of power. The property was developed as a joint venture between Tratt Properties and KTR Capital Partners.
Tony Lydon and Marc Hertzberg with Jones Lang LaSalle in Phoenix represented the landlord, while John Hanson with Commercial Real Estate Solutions in Seattle, a Cushman & Wakefield alliance member, represented Amazon.
Access Inks 77,500-SF Office Deal at 3 Ravinia
By Laurie Forbes
Access Insurance Holdings Inc. leased 77,500 square feet at Three Ravinia Drive in Atlanta, GA. The locally based auto insurance company inked a 10-year deal that will move its corporate operations to the Central Perimeter office tower.
Colonial Properties Trust owns the 19-year-old, 31-story, 813,145-square-foot building on 3.76 acres. Other tenants at the 90 percent leased property include InterContinental Hotels Group PLC, Alcan and Eclipsys Corp.
Access will relocate from 2830 Dresden Drive NE, a two-story, 26,906-square-foot office building owned by Century Properties XI LP. The 35-year-old property is on 2.78 acres in the Chamblee submarket.
Harrison Morris, a vice president in Grubb & Ellis' Office Group, represented Access. Chris Port and Katherine Lynch with CBRE represented Colonial.
Amonix Coming to Golden Triangle Industrial Park
By Justin Sumner
Amonix Inc. executed a 68-month lease for the manufacturing facility at 4975 N Pecos Road in North Las Vegas.
The 214,030-square-foot industrial building was built in 2001 and is part of the Golden Triangle Industrial Park.
Amonix, a leading designer and manufacturer of concentrated photovoltaic (CPV) solar power systems, plans to have the new plant up and running by the end of 2010. It should bring 278 clean energy jobs to North Las Vegas
The facility will be financed by a $6 million tax credit from the Recovery Act and another $12 million in private capital.
Donna Alderson of CB Richard Ellis represented the property owner in the lease deal.
ACE Renews at 525 W Monroe
By Vicki Sevel
ACE USA signed a renewal/expansion deal at its current headquarters at 525 W. Monroe St. in Chicago. The tenant occupy approximately 60,032 square feet through June 2022.
ACE USA is the retail arm of ACE Group, an insurance company offering property, casualty, risk management, accident and health insurance products. Its Midwest regional headquarters has called the property home since 2000.
The tenant decided to renew instead of moving to another building because of its strong relationship with building ownership and management, coupled with a competitive lease package and the availability of additional space in the building.
The 525 W. Monroe property is a 25-story, 905,000-square-foot office building in Chicago's West Loop. The S-shaped building features a four-story glass atrium, indoor parking, large floor plates and river views.
Victoria Noonan, managing director with Tishman Speyer, represented the building ownership, a partnership between New York-based Tishman Speyer and the Crown family. Martin Horner, Eric Kunkel and Scott Ohlander of Jones Lang LaSalle represented the tenant.
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Absolute Graphics Solutions LLC signed a five-year lease for 66,652 square feet in the industrial building at 8186 Industrial Park Drive in Grand Blanc, MI. The Metoke Corp. originally owned the industrial property that delivered in 1986 and sold it to B&B Thompson Family LP in 2006. It is near the new Trillium Circle Village Lifestyle Center in Grand Blanc and currently for sale. Absolute Graphic's lease is for the entire building and it is in the process of moving in from a smaller property nearby. (By: John Walz)
Advanced Logistics Management Inc. (ALMI), a provider of real estate supply chain services, has leased the distribution center at 19067 South Reyes in Rancho Dominguez, CA. The 173,000-square-foot facility was built in 1968 and will be used to serve ALMI's customers that utilize the Ports of Los Angeles and Long Beach. Eric Ruehle represented the landlord, First Industrial Realty Trust, in-house. Casey Mungo of Daum Commercial represented ALMI.
BB&T Corp. inked a new 15-year deal at 1909 K St. NW in Washington, DC. The lease includes a renewal of 24,629 of office and
retail space and the addition of 7,093 square feet for its wealth management group. The Tower Cos. owns The Millennium Building at 1909 K, a 12-story, 233,400-square-foot, Class A property in the central business district. It was built in 1973, redelivered in 1999 and is LEED:EB certified. BB&T, an 11-year tenant of the building, shares the roster with Thompson Coburn LLP, Porter Novelli and Smith & Wollensky. John Kerr of CBRE represented the tenant, while CBRE's Randy Harrell, Kevin Howard and Nathan Beach represented the owner. (By: Laurie Forbes)
BioMarin leased 20,000-square-feet for 41 months from Lexington Realty Trust at 100 Wood Hollow Drive in Novato, CA. The biopharmaceutical company will occupy the east wing on the third floor, Suite No. 350, when tenant improvements are done, scheduled for November 2010. The 124,600-square-foot office building was constructed in 2001 and is in the Novato/Ignacio/North Marin submarket. Mark Maguire of Colliers International represented BioMarin. Mark Carrington, Brian Eisberg and Haden Ongaro of Cornish & Carey represented Lexington. (By: Alexis Van Noy)
Celldex Therapeutics renewed 23,413 square feet for seven years at 151 Martine St. in Fall River, MA. The biopharmaceutical company’s new lease included adding second floor research and development space.The nine-year-old property at 151 Martine is a 60,000-square-foot, Class B building in South Coast Research business park that includes office, manufacturing and laboratory space. UMASS Dartmouth Advanced Technology & Manufacture and Oci Software also occupy the building. Brendan Callahan, an executive vice president at Jones Lang LaSalle, represented Celldex. Massachusetts Development Finance Agency, the owner, used in-house representation. (By: Laurie Forbes)
CynergyHitech, an electronics service organization that specializes in fixing/refurbishing mobile phones, took 70,929 square feet for five years at Northbelt Business Park in Norcross, GA. The facility at 6080 Northbelt Drive will serve as the company's headquarters. Built in 1982, the 70,929-square-foot industrial building is on 6.4 acres in the Norcross Industrial submarket. The structure is part of several buildings in Northbelt Business Park, which has a total of 70 acres and 901,190 square feet of warehouse/distribution and office space. Doug Tyler and Ryan Sawyer of Colliers International represented the landlord, The Travelers Cos. Inc. CynergyHitech hired Chris Irby and Bill Buist for tenant representation. (By: Matthew Ficken)
DP Electronic Recycling, a company that focuses on end-of-life electronic recycling and disposal, signed a full-building lease at 540 E Centralia St. in Elkhorn, WI. The new tenant will occupy the entire building. The 39,577-square-foot industrial building, constructed in 1988 in the Walworth East Industrial submarket, features two loading docks and two drive-in bays. It is located just off of I-43, north of Babe Man Park. John H. Henderson and Vytau Barcas of NAI MLG Commercial represented the landlord, J&L Ventures LLC. (By: Matthew Myers)
Demarais LLP signed a 10-year, eight-month lease for 22,408 square feet at 230 Park Ave in Manhattan. The 34-story office building totals approximately 1.4 million square feet and is in the Grand Central submarket. It was constructed in 1929 and renovated in 2005. Tenants include ING, Satterlee Stephens Burke & Burke LLP and HSH Nordbank. A joint venture of Monday Properties and Archon Group acquired the building in 2007 for $1.15 billion, according to CoStar information. Desmarais' lease is for the entire 26th floor. Occupancy is scheduled for November. David Stockel and Peter Van Duyne of Cushman & Wakefield represented Desmarais. Paul Amrich of CB Richard Ellis and Jordan Berger of Monday Properties represented ownership. (By: Andrew Sears)
Food 4 Less, a discount grocery store, subleased 82,126 square feet of the former Dominick’s grocery store in the Lincoln Crossing Shopping Center in Chicago Heights, IL. The Food 4 Less location is expected to open its doors in spring of next year. Lincoln Crossing is a 101,497-square-foot shopping center built in 1998 and is at the northeast corner of Route 30 and Western Avenue. Liz Krebs of Mid America Asset Management represented the landlord, PERA Lincoln Crossing Inc., and the tenant was self-represented. (By: Julius Copeland)
Frenkel & Co. is relocating its operations to Harborside Financial Center Plaza 3 at 34 Exchange Place in Jersey City. The international insurance brokerage company signed an 11-year, 23,516-square-foot lease with Mack-Cali. Harborside Financial Center is a mixed-use complex that includes five Class A office buildings totaling 3.1 million square feet. It is 98% leased. Plaza 3 is a 10-story office building built in 1928 and renovated in 1986. Richard Mirliss and Daniel B. Harrison of Knight Frank, as well as Robert M. Romano of Jones Lang LaSalle represented the tenant. (By: Nina Thilert)
Frontier Airlines has renewed its headquarters lease at 7001 Tower Road in Denver through 2020. The airline holding company has occupied the entire 70,000-square-foot office building since 2001. Frontier is moving its customer relations and reservations teams into the building this month, where they will join many other departments. The company expects to eventually have more than 500 people working out of its headquarters. Jamie Gard with Frederick Ross Co. represented Frontier in the lease. Ryan Stout with Grubb & Ellis represented the landlords, Runway Properties and Pawnee Transportation.
HomeGoods, the national lifestyle retail chain offering furniture, kitchen, dining and bed & bath merchandise, signed a 10-year lease for 26,403 square feet at 795 Columbus Ave. in New York. The 12-story mixed-use property is scheduled to complete construction in the fall. Other tenants will include The Mandell School and Modell's Sporting Goods. Peter Ripka of Ripco Real Estate represented HomeGoods. Lori Shabtai and Kelly Gedinsky of Winick Realty represented the landlord. (By: Andrew Sears)
KVT-Koenig LLC signed a 17,608-square-foot lease at 73 Defco Park Road in North Haven, CT. The developer of fastening and sealing applications will occupy 12,200 square feet of warehouse space and 5,408 square feet of office space in the building. The two-story, 30,000 square-foot industrial building was built in 1966 in the New Haven submarket. KVT-Koenig will be moving into its new space in October of 2010. Steven Inglese of New Haven Group represented the tenant. Albert Scafati, of Press/Cuozzo Commercial Realtors represented the landlord, MAD MAT Properties LLC. (By: Sharon Koutroumpis)
Lane Construction, a heavy civil and transportation industries building company, signed a three-year lease for about 20,800 square feet at 14500 Avion Parkway Chantilly, VA. The three-story office building totals 57,345 square feet in the Avion Business Park. Trammell Crow Co. developed the property in 1988 and sold it to Advance Realty Group in 2002, according to CoStar information. Lane’s lease consists of the second and third floors. Other tenants include TechLaw Inc. and Medicomp Systems Inc. Carter Byrnes of CB Richard Ellis represented the landlord and Cecilia Valois of Long & Foster represented the tenant. (By: Matthew Marshall)
Morris Home Furniture leased 91,000 square feet of retail space at Springdale Beltway Center in Springdale, OH, and has begun building out part of the long-vacant space once occupied by Roberd’s Grand Furniture Store. The Dayton-based retailer's new showroom at 11765 Commons Drive will be adjacent to the Ashley Furniture store it already operates in the shopping center. Morris' buildout is expected to take 10 weeks and cost $3.5 million. Larry Bergman and Billy Gillman of NAI Bergman represented the landlord, Springdale-Kemper Associates LP. The tenant did not use a broker. (By: George Cerny)
Sky High Sports took 45,000 square feet in the industrial building located at 11101-11131 SW Greenburg Road in Tigard, OR. This will be the indoor trampoline facility's eighth location and its first in Oregon. The 60,000-square-foot facility is on 4.75 acres in the 217 Corridor/Beaverton submarket. Sky High Sports' new location is scheduled to open in October. George Slevin and Cliff Finnell of GVA Kidder Mathews represented the landlord, while Jon Rubey of Colliers International represented the tenant Sky High Sports. (By: Travor Chapman)
Sonus Networks is relocating its corporate headquarters in the Westford Technology Park, moving from 7 Technology Park Drive to 4 Technology Park Drive. The provider of voice infrastructure solutions signed an 80,000-square-foot lease with The Gutierrez Co. for seven years and eight months, slated to commence in December. The average base rent is $78,000 per month. Sonus is also obligated to pay a monthly share of real estate taxes, operating costs, insurance and utilities.
The University of Phoenix is renewing and expanding in Maitland Green II at 2290 Lucien Way in Maitland, FL. The university signed for a total of 42,044 square feet, up 14,161 square feet from its previous lease. The four-story, 83,712-square-foot office building was built in 1998 in the Maitland Center submarket. This latest renewal is the third expansion for the University of Phoenix in the building. Michael C. Phipps with CB Richard Ellis represented the landlord, New Boston Stiles MG LLC.
Wipro Technologies, a global IT services, business process outsourcing and product engineering company, signed for 22,388 square feet at the 15 Piedmont Center building in Atlanta, GA. The company, headquartered in Bangalore, India, will occupy the sixth floor of the 16-story tower. Constructed in 1998, the 300,000-square-foot office building is on 52 acres at 3575 Piedmont Road in the Piedmont Center. The property is in the Upper Buckhead submarket. Chuck Francis and Jeff Dils of Cousins Properties represented the landlord. Richard Garchar of LRE Solutions represented the tenant. (By: Ryan Deutsch)