Also This Week: PIMCO Building New HQs in Newport Beach; Alcatel-Lucent Will Keep its 600 Jobs in Ohio; and Additional Expansions & Relocations from: Direct Energy, Doctors Without Borders, Hunt Slonem, MicroPact, Namco Networks America, Pepsi, Vizio, Wilk Auslander and others
Kohl’s Department Stores closed on the purchase of a 602,250-square-foot industrial building at 1701 Trimble Road in Edgewood, MD. The sale price was not disclosed. The building previously sold in 2005 for $21.25 million. The retailer plans to use the building as a distribution center to fulfill orders made on Kohls.com, which is expected to handle $1 billion in e-commerce sales in 2011. The Maryland facility will be the company’s third distribution center supporting Kohls.com. Other centers are in San Bernardino, CA and Monroe, OH.
Kohl’s said it plans to expand the facility to one million square feet by 2012 as part of the retailer's continued growth, which also includes 40 new stores and 100 remodels in 2011. The company currently operates 20 stores in Maryland, and said the new facility is expected to create approximately 1,200 jobs over the next three years.
With the purchase in Edgewood, Kohl’s will operate a total of 12 distribution centers across the country. The retailer has 1,097 stores in 49 states.
Matthew Laraway, senior director from Cushman & Wakefield’s Baltimore office, and Phil Lombardo, executive director from the firm's Inland Empire office, jointly represented Kohl’s in this purchase. The seller, ProLogis, was represented by William Pellington, Justin Mohler, Adam Weidner and Toby Mink of CB Richard Ellis.
PIMCO Building New HQs in Newport Beach
By: Randyl Drummer
PIMCO is hiring The Irvine Company, Orange County, CA's largest landowner and developer, to build a 380,000-square-foot headquarters building in Newport Beach, CA, for the global investment management firm.
After an extensive search of sites for its new headquarters, which included several choice Orange County office markets, PIMCO decided on 650 Newport Center Drive in Newport Beach. The company, founded in 1971 in Newport Beach, employs 850 of its worldwide workforce of 1,500 in the high-end Orange County coastal city.
Construction is expected to begin by late summer of 2011 and to be completed by mid-2013. The new building, designed by renowned architect Henry Cobb of Pei Cobb Freed & Partners of New York, will include a collaborative open-architecture floor plan, a conference center and state-of-the-art trading floor. Irvine Co. expects the building to qualify for LEED certification.
Alcatel-Lucent Will Keep its 600 Jobs in Ohio
By: Laurie Forbes
Alcatel-Lucent inked a nearly 120,000-square-foot lease at the Atrium II, a two-tower office property in Dublin, OH. The communications technology company will move approximately 600 employees to the central Ohio development starting next month.
The firm currently houses its local information technology and testing operations at 6200 E. Broad St., a 1.39 million-square-foot industrial facility in Columbus.
The state was at risk of losing hundreds of jobs as the telecommunications equipment maker contemplated a relocation to office space at company-owned facilities in Naperville, IL, New Jersey and Texas. In January, the Ohio Department of Development approved $10 million worth of tax credits redeemable over 10 years to help keep the jobs in the state.
“Choosing Dublin as its preferred location in central Ohio came down to the company finding the right building (Atrium II at 5475 Rings Road), at the right location with great access for its workforce and visitors, at the right price,” Colleen Gilger, Dublin's Economic Development Administrator, said in an earlier statement. “Lease rates are very competitive right now. This decision to narrow the company’s choice to Atrium II is reflective of the competitively priced Class A space that is available in Dublin.”
Built in 1997, Atrium II is one of two five-story buildings in a 291,445-square-foot complex owned and developed by Duke Realty Corp. Alcatel-Lucent will use the space for administrative and R&D purposes. On-site improvements will include a new 21,000-square-foot computer and equipment testing lab and loading dock on the north side of the North Tower.
"The City of Dublin is proud of the strong working relationship we have forged with Duke Realty,” said Gilger. "Through our partnership, we worked collaboratively to find creative solutions to retain Alcatel-Lucent to central Ohio.
Rick Nash with Equis negotiated for Alcatel-Lucent. Ben Struewing was the in-house representative for Duke Realty.
Additional Expansions & Relocations
C Square Educational Enterprises Inc. (d/b/a Broadview University)
entered into a lease agreement with Myhre Holdings-Meridian LLC for a 31,200 square foot building in Meridian, ID, for operation of a branch campus. The lease term is for an initial period of 10 years with two additional 5-year renewal options. The agreement is a triple net lease with monthly base rent of $39,000.
a skin care manufacturer and retailer signed a 6-year lease deal for the entire 78,676 square feet of flex space at 17275 NE 67th Court in Redmond, WA. The company will move in after significant tenant improvements to the space are completed around August 2011. The tenant will be moving from multiple buildings, including Mercer Park in Bellevue. The deal was signed in March and included significant tenant improvements and free rent. Tom Wilson and Gary Bullington of C&W Commerce represented the landlord, Keeler Holdings LLC. Daran Davidson of Kidder Mathews represented Clarisonic. (By: Kerry Post)
one of the largest multi-state providers of retail energy services in North America, renewed 72,570 square feet at the 12 Greenway Plaza in Houston, and will expand an additional 21,023 square feet. The company is the third largest retail energy provider in Texas and employs more than 1,000 Texans, half of them at its corporate office in Greenway Plaza. Warren Savery and Bubba Harkins of Crescent Real Estate Holdings LLC represented the owner, Crescent Crown Greenway Plaza SVP LLC. Sue Rogers and Steven Heal of CresaPartners represented Direct Energy. (By: Rafael Ruiz)
Doctors Without Borders (Médecins Sans Frontières)
an international medical humanitarian organization, signed a 10-year lease expansion for 32,340 square feet in the office building at 333 Seventh Ave. in the Chelsea section of New York City. The 21-story building totals 410,334 square feet and was originally built in 1920. It is owned by Samco Properties. Doctors Without Borders’ lease includes the already occupied second floor and about 10,340 square feet on the third floor. Carri Lyon of Cushman & Wakefield represented Doctors Without Borders, while the landlord was represented in-house. (By: Fran Koerner)
Hunt Slonem LLC
signed a 10-year, 22,500-square-foot lease at 509 W. 34th St. in New York City. The internationally renowned artist will relocate from 545 W. 45th St. in June, taking occupancy of the entire third floor. Carri Lyon with Cushman & Wakefield represented Hunt Slonem Studios. Fred Rosenberg and Adam Weissleder represented Sherwood Equities in-house. (By: Nicole Tanner)
leased 20,845 square feet at 12901 Worldgate Drive in Herndon, VA. The data tracking software company will move out of 14,000 square feet at 2250 Corporate Park Drive, America's Capital Partners’ six-story, 158,015-square-foot office building in Herndon, by next month. MicroPact will occupy the top floor of Worldgate Plaza I, Inland Real Estate Group of Cos.’ 83,330-square-foot, eight-story office property at Worldgate business park. Brian Wood and Bill Zonghetti of Newmark Knight Frank represented MicroPact. Terry Reiley of CB Richard Ellis negotiated for Inland. (By: Laurie Forbes)
Namco Networks America Inc.
signed a long-term deal for 33,446 square feet at the Kodak Center, at 1740 Technology Dr. in San Jose, CA. The leading publisher and developer of PC and mobile games will expand onto the sixth floor, as it already occupies space on the fourth floor in the 205,428-square-foot, class A office building. It will take occupancy of its new space starting in June. Michael Rosendin, Susan Gregory and Katherine Roxborough of Colliers International in San Jose represented the tenant and the landlord, Equity Office. (By: Jeff Hitch)
Pepsi Beverages Co.,
the bottling division of PepsiCo Inc., renewed its lease of 360,000 square feet and expanded to occupy the entire office building at 1 Pepsi Way in Somers, NY. Arthur Mirante, Glenn Walsh and Larry Ruggieri of Cushman & Wakefield represented the landlord, Murray Hill Properties LLC. Paul Jacobs and Robert Caruso of CB Richard Ellis represented Pepsi Beverages. (By: Tanika Belfield-Martin)
signed a 10-year deal for 99,780 square feet at 525 Almanor Ave. in Sunnyvale, CA. Starting in August, the IT development firm will occupy the third through fifth floors in the 166,300-square-foot building. Ben Stern of Cornish & Carey Commercial Newmark Knight Frank in Palo Alto represented Riverbed Tech. Gregg von Thaden and Donald Reimann of Colliers International in San Jose represented the landlord, Menlo Equities. (By: Jeff Hitch)
purchased the office building at 35 Tesla Drive in Irvine, CA, from The Owen Group for $7.5 million, or about $208 per square foot. Vizio eventually plans to occupy the entire property to accommodate its expanding business. It plans to absorb the space as needed, initially occupying around 25% of the building within the next three to six months. Trent Walker of Voit Real Estate Services represented the seller. Jim Snyder of Lee & Associates represented the buyer. (By: Kevin Watson)
signed a 74-month office lease at 1751 Harbor Bay Pkwy in Alameda, CA. Webcor will be occupying 37,663 square feet of the 73,081-square-foot building. Brian Collins and Adam Peterson of Cassidy Turley BT Commercial in Oakland represented the tenant, and Ryan Hattersley , Charlie Allen, Anthony Shell, and Daniel Bisabri of Cushman & Wakefield in Oakland represented the landlord, BPG Properties Ltd. (By: Melanie Tucker)
Wilk Auslander LLP
signed a long-term lease for 34,000 square feet on the 43rd floor of 1515 Broadway in New York. Occupancy is scheduled for later this year. The law firm will be moving from 675 Third Ave. David Hoffman and Wendy Miller of Cassidy Turley represented Wilk Auslander. Cynthia Wasserberger, David Kleiner, Frank Doyle, and Edward DiTolla of Jones Lang LaSalle represented the landlord. David Kaufman and Ashley Gee also handled the deal in-house for SL Green. (By: Lauren Hale)
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