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Lease Up/Lease Down (Sept. 27 - Oct. 3): Two Law Firms Relocate, Sony Renews

Consolidating All of Your Leasing and Relocation News
September 30, 2009

Expansions, Relocations & Extensions; Closures & Layoffs; and Lease Cancellations have been consolidated into Lease Up/Lease Down. Here you will find news on companies that are expanding, relocating, consolidating and renewing. You will also get an in-depth look at bankruptcy filings and job loss. Look to Lease Up/Lease Down every week for valuable information that can be used as a source for business leads.

In this week's issue:
  • Two law firms relocate in Boston and Miami

  • Sony signs major renewal but may be downsizing

  • GM cancels more leases

  • GE Transportation prepares to close a major facility

  • Expansions & Relocations

    Law Firm Moves Boston HQ to One Marina Park Drive

    Fish & Richardson P.C. is relocating its Boston office to One Marina Park Drive, the new office building under construction along the city's waterfront.

    The global law firm signed a 124,000-square-foot deal, taking the second floor, half of the 15th floor and floors 16-18. Fish & Richardson plans to relocate from its 95,000-square-foot space at 225 Franklin St. in January 2011.

    One Marina Park Drive is due to deliver in 2010 and is seeking LEED Gold Certification. The 18-story, 500,000-square-foot high-rise greatly serves Fish & Richardson's interests due to its close proximity to the courthouse and its accessibility to public transportation, said Timothy French, the firm's managing principal in Boston.

    It is also a key part of Fan Pier - the ambitious 21-acre mixed-used project currently under development by The Fallon Co. When complete, the 3 million-square-foot development is to consist of office, retail and residential space, a five-star hotel and a marina.

    Andrew Hoar and Timothy Lyne of CB Richard Ellis - New England represented Fallon in the lease transaction. Richard Fahey and Barry Hynes with FHO Partners handled the deal for Fish & Richardson.

    Financial terms were not disclosed, but it is being widely speculated that Fallon offered an attractive deal to a law firm that has been looking to cut costs. Fish & Richardson has shed 170 jobs since last November and is preparing to close its office in Austin, TX.

    Bilzin Sumberg Relocates to 1450 Brickell

    A major Miami law firm has signed for 80,000 square feet at 1450 Brickell, Rilea Group's forthcoming landmark office tower. It is the largest new office lease in South Florida this year.

    Bilzin Sumberg Baena Price & Axelrod LLP signed for a 15 year term. Occupancy is slated for January 2011.

    Rilea Group is putting the finishing touches on the 35-story, 576,379-square-foot office tower, which is due to deliver early next year. 1450 Brickell is the first office building in Miami's Central Business District to be pre-certified LEED Gold.

    Bilzin Sumberg's lease consists of the 22nd - 24th floors (25,000 square feet each) and 5,000 square feet on the 21st Floor. The law firm is the first tenant to sign on at the building, relocating from Wachovia Financial Center.

    Tere Blanca, president and CEO of Blanca Commercial Real Estate, along with Danet Linares, vice president, represented the landlord in negotiations. Barbara Liberatore Black, vice chair and founding principal of CresaPartners' Miami office, and Matthew Goodman, principal, handled the deal for Bilzin Sumberg.

    Blanca sees Bilzin Sumberg's lease as a part of a "flight to quality" that is occurring as more than 1.2 million square feet of new office space in Miami's Central Business District by next year."Today’s market presents companies a unique opportunity to upgrade their office space," she said. "As businesses seek to align their space needs with their business goals, many companies are choosing to relocate."

    Blanca said she foresees "nothing but 100 percent success" for 1450 Brickell. Although Bilzin Sumberg currently the only tenant to land a deal in the building, Blanca expects many more to follow. "We have more space in activity than we have available to lease," she said.

    1450 Brickell could prove to be an attractive option as office tenants continue to seek out space in stable properties. Financing for the building, provided by Bancaja and several other banks, was secured before the financial crisis last year.

    American Land Lease, a leader in innovative resort-style communities for active adults, signed a 10,300-square-foot office lease at 380 Park Place in Clearwater, FL. The second floor lease commences in November. Built in 2001, the three-story, 81,936-square-foot office building was awarded an Energy Star label in 2009 for its operating efficiency. American Land Lease is moving from Northside Square at 29399 US Highway 19 N, also in Clearwater. The owner, Highwoods Properties, was represented in-house by Laurie Alden. (By: Patrick Latimer)

    Anheuser-Busch Recycling Corp. signed a seven-year lease at 3495 Breakwater Court in Hayward, CA. The tenant plans to move into the 58,400-square-foot industrial building in January 2010. Greig Lagomarsino and Rick Keely of Colliers International, as well as Jay Holland of Colliers Turley Martin Tucker represented the tenant. Lagomarsino, along with Mark Maguire and Kevin Hatcher of Colliers International represented the landlord, WSA Breakwater LLC. (By: Adam Test)

    Cypress Insurance Co., a Berkshire Hathaway subsidiary, signed a 20,855-square-foot lease for the top floor at Rio Vista Plaza III in San Diego. The lease is for 60-months and is worth $2.4 million. The four-story, 80,058-square-foot office building at 9095 Rio San Diego was built in 2005 and is part of the Rio Vista Plaza office park. Tony Russell and Richard Gonor of Grubb & Ellis|BRE Commercial represented the landlord, BlackRock Realty Advisors. Darin Bosch and Bill Bacon of CB Richard Ellis represented the tenant. (By: Scott Stephenson)

    Evergreen Aviation Ground Logistics Enterprises fully leased the warehouse at 238-242 Lawrence Ave. in South San Francisco. The Oregon-based global aviation services company signed a four-year deal. Built in 1986, the industrial building measures 40,420 square feet. The facility is located just minutes north of San Francisco International Airport. Evergreen is relocating from a 40,000-square-foot facility in Brisbane, CA. Matt Squires of NAI BT Commercial represented the tenant. Marshall Hydorn and Jason Cranston of NAI BT Commercial represented the landlord, John C. Nickel Properties. (By: Lauren Greenwald)

    Galfand Berger LLP signed an 11-year lease for 10,886 square feet on the 27th floor at 1835 Market St. in Philadelphia. The law firm is relocating its headquarters from 1818 Market Street. The 29-story, 685,653-square-foot office tower was built in 1986 and renovated in 1997. It is near One Liberty Place. Galfand Berger plans to take occupancy in January 2010. Michael Brown of Thomas Properties Group represented the landlord. Timothy B. Monahan, Kenneth D. Clyman and Patrick W. McGrath of Studley Inc represented Galfand Berger in the deal. (By: Tammy Kelly)

    Hospice of Arizona signed a six-year lease for 17,261 square feet at the North Loop 101 Business Center, Building D in Phoenix. The health care provider is taking occupancy in first quarter 2010. The two-story, 88,057-square-foot office building at 19820 N. Seventh Ave. sits on almost 8 acres of land. It is in the Deer Valley/Airport submarket. Ashley Brooks, James Bayless and Kelley Morrison of CB Richard Ellis in Phoenix represented the landlord. Hospice of Arizona was represented by Dave Barrett, also of CBRE. (By: Emily Baker)

    Lennar Homes of California Inc. subleased 16,416 square feet at One California St. in San Francisco. The home builder will take occupancy of the 27th floor in December. One California is a 32-story, 484,129-square-foot office building in the financial district. Jak Churton and Joseph Giordani of CB Richard Ellis represented the tenant. Bob Kraynak and Lisa Cracknell of Cushman & Wakefield of California represented the sublessor, UBS. (By: Ryan Munneke)

    Limited Stores LLC signed a seven-year lease for 54,106 square feet in New Albany, OH. The retailer is moving its headquarters into new Class A office space at the Water’s Edge Campus. The property at 7775 Walton Parkway is one of three buildings included in the Water’s Edge Campus project. The four-story, 106,500-square-foot building delivered in June. Brett Cisler, principal and senior vice president of Grubb & Ellis/Adena represented Limited Stores. Greg Weber, assistant vice president of The Daimler Group represented the landlord, Water's Edge at New Albany LLC. (By: Carole Schreck)

    ModCloth Inc., a leader in e-commerce for women's clothing, is taking 46,215 square feet at the Gateway View Plaza in Pittsburgh. The three-year lease commences in November. The flex building at 1600 West Carson St. was renovated in 1998 and has a total square footage of 365,500 feet. Susan Gregg Kroger started ModCloth in 2002, selling vintage clothes and accessories out of her dorm room at Carnegie Mellon University. Thomas J. McCaffrey of Grant Street Associates represented the tenant. Edward Very of The Buncher Company represented the owner in-house. (By: Michael P. Roerty)

    Perfect 10 Inc. leased 45,000 square feet at 14125-14145 NE Airport Way in Portland. Occupancy is scheduled for October. The 123,750-square-foot industrial building was constructed in 1997 in the Airport Way Commerce Park. Tony Reser and Tom Talbot of GVA Kidder Mathews represented the landlord, while Jordan Samiee of Coldwell Banker Commercial Mountain West RE represented the tenant. (By: Pamela Murray)

    The U.S. Department of Agriculture signed a 10-year lease for 18,500 square feet at Queens Tower, located at 88-11 165th St. in Jamaica NY. The 185,000-square-foot office was built in 1972, with major renovations completed recently. The USDA plans to occupy the entire seventh floor. Maria Kobe of CB Richard Ellis represented the tenant. Stanley Markowitz of Muss Development Company represented the building owner. (By: Ola Ayodeji)

    The U.S. Department of Veterans Affairs signed a 15-year lease at the Ancona Professional Plaza, Building A in Surprise, AZ. The tenant took 26,670 square feet and is moving into the space in August 2010. The two-story, 75,000-square-foot office building at 13985 W. Grand Ave. was built in 2008. Ashley Brooks, James Bayless and Kelley Morrison of CBRE Phoenix represented the landlord in this transaction. The Department of Veterans Affairs had its own representation from Washington D.C.; the name was not disclosed.(By: Emily Baker)

    Universal Executive Suites signed a 74,754-square-foot sublease at 1350 Avenue of the Americas in New York. The term begins November 2009 and runs through November 2020. The 35-story, 555,000-square-foot office tower was built in 1966 in the Plaza District. Joseph Harkins, Barry Lewen, Ira Rovitz and Sean Fay of Grubb & Ellis represented the sublandlord. Scott Panzer and Sean Black with Jones Lang LaSalle represented the subtenant. (By: Christina McKinnon)

    Wente Vineyards, one of the largest wineries in Livermore, CA, signed a three-year lease for 38,259 square feet in an industrial facility at 6262 Patterson Pass Road. The 118,515-square-foot building was constructed in 1988. Mike Lloyd and Mike Carrigg of Colliers International represented the landlord, Walton Realty Inc. Mark Triska of Colliers International represented Wente Vineyards. (By: Noel-Alexis Bautista)

    Lease Extensions

    Sony Renews at Howard Hughes Center But May Be Downsizing

    Sony Corp. has extended its 50,435-square-foot lease at 6080 Center Drive in Los Angeles. Equity Office Partners signed the electronics giant to a five-year deal.

    The 12-story, 315,592-square-foot office building was built in 2001 in the Marina Del Rey/Venice submarket, about five miles north of LAX. It is part of the Howard Hughes Center. Sony operates its Digital Cinema Sales Office out of the location.

    The renewal might actually prove to be a downsizing for Sony, which has occupied the top three floors in the building - a total of 73,300 square feet - since 2005. The electronics company has only extended its lease for floors 11 and 12 and has about another month to decide on keeping its 10th floor space.

    Chris Houge, Hunt Barnett, Rick Buckley, Beau Rawi and Karly Nolen with Madison Partners represented the landlord, along with Equity Office's own Conan Cotrell. Carl Muhlstein, Steve Walbridge and Eric Duncanson of Cushman & Wakefield handled negotiations for Sony.

    The new lease marks Sony's second major renewal in southern California this year. The electronics company renewed its 184,000-square-foot flex lease at the San Diego Tech Center in June.

    Brown & Toland Physicians renewed 53,148 square feet for seven years at 160 King St. in San Francisco. The independent practice occupies the entire seventh floor and part of the sixth floor. Frank Fudem of NAI BT Commercial represented the tenant. Jim Durfey was the in-house representative for American Assets, the owner of the building. (By: Ryan Munneke)

    Intervention Center for Early Childhood (ICEC) leased the 10,300-square-foot office building at 16265 Laguna Canyon Road in Irvine, CA. The Sares-Regis Group accepted terms on a five-year lease renewal. The building delivered in 1990 and is part of the Irvine Oaks Executive Park. ICEC occupies the entire building. Don Yahn, John Gallivan and Brett Swartzbaugh of Cushman & Wakefield represented the landlord, while David Willis and Colleen Hostetter of CresaPartners represented the tenant. (By: Frederick Ankenman)

    The U.S. Department of Health and Human Services signed a five-year lease renewal at 5600 Fishers Lane in Rockville, MD. The agency occupied the entire building for approximately 40 years and is now downsizing to 801,550 square feet. The 18-story, Class B office property measures 1.33 million square feet on 3.79 acres. Peter Marcin and Brian Sullivan of Cushman & Wakefield, Inc. represented the landlord, Parklawn Joint Venture LP. Henry Chapman of CB Richard Ellis represented the tenant. (By: Jeff Warnock)

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    Lease Cancellations

    General Motors (GM) has announced more lease casualties after its much-publicized Chapter 11 filing in June. The automaker said it is undertaking a "comprehensive review" of its property leases and shedding any properties that are no longer needed. The latest list includes office space that it no longer utilizes, a sandwich ground lease for a franchised dealership no longer in use and an obsolete warehouse.

    Escada filed for insolvency in its home country of Germany last month, after seeing its sales fall 16 percent, year-over-year. The high-profile clothing designer now faces the termination of its retail lease at 717 Fifth Ave. in Manhattan. According to New York law, if a tenant files for protection against a debtor, it constitutes an event of default and the landlord can terminate the tenant’s lease. 717 GFC LLC, which owns 717 Fifth Ave., filed a motion to terminate Escada's lease.

    Company Address Affected Parties Comment
    GM 2901 SW 149th Ave, Miramar, FL Metropolitan Life Insurance Co. 500 SF, exp. 12/31/2010
    GM 525 Baltimore Pike, Clifton Heights, PA Milex Properties III LLC, SN&JN LP Ground lease, exp. 5/31/2014
    GM 4002 James Cole Blvd, Flint, MI Wilmington Trust Co., Verizon Capital Corp./Bell Atlantic TriContinental Leasing Corp. 162,000 SF, exp. varies
    GM 2625 Tyler Rd, Ypsilanti, MI Willow Run Business Center I LLC 1,000,000 SF, exp. 8/31/2010
    Escada 717 Fifth Ave, New York, NY 717 GFC LLC Landlord terminating lease, 5,200 SF, exp. 1/15/2016
    Eddie Bauer 13425 SE 30th St, Bellevue, WA Venture Five LLC

    Closures & Layoffs

    Company Address Closure or Layoff # Affected Impact Date
    GE Transportation 2901 E Lake Rd, Erie, PA layoff 1,450 11/14/2009
    JELD-WEN Inc. 4000 E State Hwy 31, Corsicana, TX
    closure 84 11/13/2009
    kgb Operator Services Co. 5302 Avenue Q # 6, Lubbock, TX unknown 78 11/21/2009
    Kalyn Siebert Trailers 1505 W Main St, Gatesville, TX unknown 35 11/22/2009
    Unilever Food Solutions 8822 N 87th St, Milwaukee, WI closure 38 11/13/2009 (layoffs), 12/31/2009 (closure)
    Northern Engraving Corp. - Luxco Division 2135 Enterprise Ave, La Crosse, WI closure 26 11/30/2009
    Wiza S82 W18762-93 Gemini Dr, Muskego, WI
    closure 132 11/23/2009
    JTEKT Automotive Virginia Inc. 555 International Pky, Daleville, VA closure 250 1/14/2010
    Colgan Air Inc. 10677 Aviation Ln, Manassas, VA closure 29 11/13/2010
    Riley Power 1420 Cascade St, Erie, PA closure 181 12/10/2009
    Sunshine Market Inc. 1492 Hwy 315, Plains, PA closure 148 11/16/2009
    Wiremold/Legrand 80 S Middlesex Rd, Calisle, PA closure 67 11/20/2009
    Red Bird West Mine (OhioAmerican Energy Inc.) 34 Kelley Way, Brilliant, OH layoff 115 11/14/2009
    Schneider National Carriers Inc. 8860 Wooster Pike Rd, Piketon, OH closure 57 11/17/2009
    Neff Manufacturing 639 Clymer Rd, Marysville, OH
    closure 88 12/31/2009
    Sonoco 425 Collins Blvd., Orrville,OH closure 81 1/15/2010
    The Andersons Inc. 3000 W. Elm St., Lima, OH closure 134 11/12/2009
    Pyramid Management Group, Inc. - Security Division 1 Walden Galleria, Buffalo, NY layoff 40 12/3/2009
    Penske Logistics Inc. 11 Terminal St, Albany, NY
    closure 81 12/23/2009
    Ramada JFK Hotel /Highgate Hotels, L.P. Building #144 Van Wyck Expressway, Jamaica, NY closure 187 12/1/2009
    Bombardier Transportation 71 Wall Street, Plattsburgh, NY layoff 200 12/21/2009
    World of Disney New York City 711 Fifth Ave, New York, NY closure 148 12/31/2009
    Raytel Cardiac Services Inc. DBA Philips Remote Cardiac Services 1979 Marcus Avenue, Suite C101, Lake Success, NY closure 48 12/18/2009 (layoffs), 1/29/2010 (closure)
    ARAMARK Management Services LP 255 Lafayette Ave, Suffern, NY closure 77 11/1/2009
    Alan Ritchey Inc. 91 Heartland Blvd, Edgewood, NY closure 80 12/29/2009
    Tana Seybert LLC subsidiary of Cousins Printing LLC 525 West 52nd St, New York, NY layoff 132 11/16/2009
    Eastman Kodak Manitou 2009-0079 2600 Manitou Rd, Rochester, NY layoff 72 11/24/2009
    11 Penn TV LLC 11 Penn Plaza, New York, NY
    layoff 16 12/1/2009
    Milford Plaza 700 8th Ave, New York, NY
    temporary closure 354 12/12/2009 (layoffs), 12/25/2009 (closure)
    Pfeiffer Foods Division of T. Marzetti Co. 683 Lake St, Wilson, NY closure 154 10/20/2009 (layoffs), 12/8/2009 (closure)
    AIG Advisor Group - Brokerage Operations One World Financial Center, New York, NY layoff 41 12/9/2009
    Henkel Corp. 710 Ohio St, Buffalo, NY potential closure 16 9/29/2009
    Buckhorn Inc. 545 Pearce Industrial Rd, Shelbyville, KY closure 88 11/15/2009
    Peabody Midwest Services LLC Francisco Surface Mine, County Road 850E, Francisco, IN closure 133 11/23/2009
    Verizon Business 11401 16th Ct N, St. Petersburg, FL
    layoff 21 11/15/2009
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