Lease Up: Major Corporate Space Moves for the Week of June 16-20
Tenants Include: 99 Cents Only, Deloitte, Fortistar Capital, Grainger, NerdWallet, New Haven Register, New World, Tetra Tech, US Foods and others
June 20, 2014
Grainger Plans New Northeast Distribution Center
Grainger, a broad line supplier of maintenance, repair and operating products, purchased 96 acres of land in Bordentown Township, New Jersey. The company plans to build a 1.3 million square-foot distribution center on this property, which is scheduled to open in 2016.
“Our new distribution center will allow us to get more products next day to our customers in the Northeast,” said Paige Robbins, vice president of Americas Supply Chain with Grainger.
When this new facility is up and running, the company expects to employ more than 400 individuals, primarily in warehouse operations. Grainger anticipates these jobs will be filled by a mix of existing employees and new hires.
Grainger currently operates 11 locations in New Jersey, including 10 branches throughout the state and a distribution center in Robbinsville.
IDI Gazeley, one of the largest global players in the logistics property sector, will serve as the developer/construction manager, and Gray Construction, a nationally ranked firm with offices and jobsites coast-to-coast, will serve as general contractor on this project. In addition, two New Jersey-based firms are helping to design and develop this distribution center. KSS Architects, an acclaimed architecture, planning and interior design firm, is the project’s architect, and Maser Consulting, recognized nationally by ENR as a Top 500 Design Firm, is the project’s civil engineer.
99 Cents Only Signs Historic 615,000-SF Industrial Lease in Commerce
By Justin Sumner
Retailer 99¢ Only Stores signed an industrial lease for the entire 615,000-square-foot Garfield Corporate Center at 6100 Garfield Ave. in Commerce, CA.
The deal marks the largest single industrial infill lease ever signed in Los Angeles County, according to JLL, who represented building owner KTR Capital Partners - which is developing Garfield Corporate Center. When completed in the second quarter 2014, the building will be the largest free-standing building constructed in the Greater Los Angeles area in the past 10 years.
Under construction since January 2013, the distribution building sits on 27.5 acres in the Commerce Industrial submarket of Los Angeles County. It will feature 109 loading docks with cross-dock capabilities, 36-foot clear heights, 2,000-amp heavy power, 52-foot column spacing, skylights, and abundant truck and trailer storage on a fenced corner lot. Immediate access to nine major freeways will offer 99 Cents Only an extensive transportation network to all three major hubs including the Ports of Los Angeles and Long Beach, Los Angeles International Airport, and the rail yards of BNSF Intermodal and Union Pacific.
“Garfield Corporate Center is one of only 14 modern distribution centers exceeding 500,000 square feet to be constructed in Los Angeles County since 1998,” said Barry Hill, senior vice president at JLL. “The Southern California industrial market, and specifically the Central Los Angeles submarket is the tightest in the region with 3.5 percent vacancy in the first quarter. Tenant demand for more efficient warehouses continues to push the envelope for state-of-the-art facilities.”
Barry Hill, Paul Sablock, Tim O’Rourke, Mike Fowler, and Zac Sakowski with JLL in Los Angeles represented the landlord. The tenant was represented in lease negotiations by CBRE.
US Foods To Open Distribution Center in Seabrook
US Foods plans to open a distribution center in Seabrook, New Hampshire. to better serve the New England area.
The company currently services this customer base from its facility in Peabody, Massachusetts. While the Peabody facility is approximately 188,000 square feet, the new facility will offer more than 500,000 square feet of space, including additional dry and cold storage and fleet fueling and maintenance areas.
The company has partnered with the ESI Group to execute the renovation of the new facility. Construction is expected to begin at the end of June and the company aims to move its operations into the new building in the first quarter of 2015.
NerdWallet Inks 46,000-SF Lease at 901 Market
By Bryce Meyers
NerdWallet signed a seven-year, 45,739-square-foot lease deal that will see the online personal finance startup occupy the entire fifth and sixth floor at the historic 901 Market St. building in San Francisco.
Constructed in 1912, 901 Market is a 212,319-square-foot, mid-rise office building situated adjacent to the Westfield Shopping Centre and Union Square BART entrance in San Francisco's Midmarket district.
The property underwent renovations in 1986 and today is comprised of approximately 126,022 square feet of office space and 86,297 square feet of ground floor and lower level retail space.
"This lease represents a long-term commitment from a rapidly growing San Francisco-based technology company at starting rents above our underwritten rents for this same space," said Victor Coleman, chairman and CEO of Hudson Pacific Properties.
Jason Burch, Jim Chesler and Charlie Moore of Cassidy Turley brokered the transaction on behalf of NerdWallet, while Michael Brown, Roman Adler and Donnette Clarens of Cornish & Carey Newmark Knight Frank represented Hudson Pacific Properties.
Deloitte Takes 113,000 SF At Downtown LA Gas Co. Tower
By Randyl Drummer
In one of the largest leases of 2014 in the Los Angeles market, Brookfield Office Properties has leased 113,000 square feet to accounting and professional services giant Deloitte at Gas Company Tower at 555 W. Fifth St.
Deloitte has started tenant improvement work with occupancy targeted for the end of the year. The relocation gives the Deloitte brand a prominent spot at the top of one of downtown’s most iconic and distinctive high-rises. Built in 1991, the 40-story building been the backdrop for many films.
The long-term lease brings the occupancy of the building to about 80%.
“Brookfield enjoys a long-standing relationship with Deloitte across the country and around the globe and is very pleased to have the opportunity to expand that relationship in Los Angeles,” said Brookfield Executive vice President, Western Region Bert Dezzutti.
Deloitte, which has occupied 276,300 square feet at nearby Two California Plaza since 2000, has an option for future expansion at its new quarters.
Lexis Livengood, with DTZ, represented Deloitte and the in-house leasing team of Barganski, James Malone, Rachael Zanetos and Marin Turney represented Brookfield in the transaction.
The tower is one of the four high-rise office towers that Brookfield Office Properties acquired as part of its acquisition of MPG Office Trust in October 2013, making the company the largest downtown owner of top quality high-rise office space.
According Morgan Stanley Research, the Deloitte lease may help to begin stabilizing the Gas Co. Tower building, where effective occupancy had declined to 66% according to CoStar. Morrison & Foerster (138,776 square feet) vacated the property in September 2013 and Sidley Austin vacated the 44th floor (27,738 square feet) effective Dec. 31, 2013.
The vacancy left by Deloitte at Two California (who was the largest tenant, leasing nearly 20% of the 1.4 million square foot building) reduced the occupancy of the property to around 40%.
New Haven Register Downsizes from 193,000 SF to 18,000 SF
The New Haven Register leased 18,000 square feet of office space at the Star Supply Building at 100 Gando Drive in New Haven.
Praxis Commercial, a real estate brokerage and advisory firm specializing in innovative real estate solutions for newspaper and media companies, found a new space having selected local CBRE brokers Tim Fegan and David Hansen to assist identify the location and finalize the deal.
Twenty Lake Holdings, as owner of the New Haven Register’s former headquarters at 40 Sargent Drive, secured a long-term lease to Jordan’s Furniture, a Warren Buffett Berkshire Hathaway company, whose forthcoming occupancy requires the Register to relocate.
“With the transformation of the business, the New Haven Register no longer required the 193,000 square foot combined office and plant facility at Sargent Drive,” said Nathanael Pennington, managing director, Praxis Commercial. “The company is now better poised for the future of digital media at the new location.”
Trio of Expansions, Relocations to Bring Thousands of New Jobs to S. Carolina
By Randyl Drummer
Monday was a big day for corporate moves, expansion and consolidation in South Carolina’s York and Chester counties. In fact, it’s the biggest single day for job expansion in South Carolina history, according to Gov. Nikki Haley.
The announcements by Haley and the South Carolina Department of Commerce will bring a total of 3,900 jobs to the state - and up to 7,100 jobs if company projections come to fruition. However, in two of the corporate moves, South Carolina’s gain could be construed as neighboring Charlotte, NC’s loss.
The moves include the following:
Independent broker/dealer LPL Financial LLC will build a regional headquarters off Interstate 77 at Highway 160 in Kingsley Park North in Fort Mill, moving 1,000 employees from three Charlotte locations.
Health care service provider The Lash Group Inc. announced plans for a new national headquarters campus in Fort Mill, including the development of a 250,000-square-foot office building by Childress Klein Properties and The Springs Co. expected to begin this summer. Lash will consolidate several Charlotte area operations into the new location.
Singapore-based Giti Tire will establish its first North American manufacturing facility Richburg, SC, investing $560 million in a 1.8 million-square-foot manufacturing and distribution facility on the Carolinas I-77 Mega Site, a 1,151 acre development area in Chester County.
LPL’s plans to accommodate its growing customer services operation involves an investment of at least $150 million through 2022 and the creation of an initial 1,000 jobs, and up to 3,000 jobs over the longer term, Gov. Haley said. Construction will begin in 2015, with expected completion in the fall of 2016.
The Lash Group, a subsidiary of AmerisourceBergen Corp., is scheduled to occupy its building in March 2016. The initial $57.3 million spent in the first phase is expected to reach $90 million when the growing company adds a second future facility.
Lash expects to employ 1,200 in Fort Mill during the first phase, with plans to double its workforce to 2,400 at the new campus over the next several years based on current projections.
The family owned Giti Tire operation is estimated to produce 5 million passenger and light truck tires for the new vehicles and replacement markets annually in its first phase, and will create 1,700 new jobs over the next decade, according to Gov. Haley.
“It doesn’t get any bigger or better for South Carolina than having the ability to announce a record-breaking 7,100 new jobs in one day,” Haley said during the flurry of public appearances that accompanied the announcements.
New World To Locate HQs in Charleston County
New World Pharmaceuticals LLC, a privately held specialty pharmaceutical company, and sister company New World Consumer Products LLC, will be locating their headquarters in Charleston County.
The companies’ new headquarters will be at 78 Alexander Street, within Flagship 2 in downtown Charleston.
The companies expect to invest more than $21 million and create more than 38 new jobs over the next five years.
Fortistar Capital Leases 18,266 SF in White Plains
Fortistar Capital leased 18,266 square feet of space at the Gateway Building in White Plains, New York. The firm is moving its headquarters from the 5th and 6th floors to new and expanded space on the 14th floor.
The CBRE agency team of William Cuddy, executive vice president, and Jacqueline Novotny, associate, represented ownership-Gateway I Group.
“The convenient location of this building, just steps from the Metro North train, has made it an attractive location to an impressive roster of professional tenants,” Cuddy said.
Fortistar, which invests in and manages power assets, was represented by Howard E. Greenberg, SIOR, president of Howard Properties.
Tetra Tech Inks Golden Renewal and Expansion
By Bryce Meyers
Tetra Tech will remain at the Sixth Avenue West building after signing a 41,434-square-foot renewal and a 7,777-square-foot expansion at the Golden, CO property.
Sixth Avenue West was constructed in 1984 at 350 Indiana St. in the West Denver submarket. The eight-story building recently underwent $500,000 in renovations, which consisted of upgrades to the lobby with new LED lighting, an onyx art wall, new flooring, updated furniture and a touch screen directory. The owner also added a new chiller and fire life safety system and intends to add a monument sign facing Indiana St.
Peter Thomas and Andrew Piepgras of Transwestern brokered the transaction on behalf of the owner, Rockville, MD-based Diversified International Partners.