Wrap-Up of Latest Largest Office Leases Reported Include: 2U, Alverez & Marsal, Common Resources, DexCom, Dish Network, Farmers Insurance, Hoskin-Ryan, Madwire, Nevakar, SunTrust, and more
ZF TRW signed a long-term lease for 171,332 square feet in the recently revamped Arboretum Office Park in Farmington Hills, MI. The company was formed last year when German car parts manufacturer ZF Friedrichshafen AG acquired Livonia, MI-based TRW Automotive. ZF ranks as one of the top three automotive suppliers worldwide based on annual sales.
Friedman Integrated Real Estate Solutions and Kojaian Management Corp. acquired the four-building Arboretum office park in 2014 following Trinity Health's headquarters relocation to Livonia, which brought the park's occupancy down to 16%.
The new owners made extensive renovations at the 40-acre campus that included lobby and atrium renovations as well as the addition of a shared conference area, full-service cafe, and LED lighting throughout.
ZF TRW will fully occupy Arboretum III, a vacant four-story office building located at 34605 W. 12 Mile Rd., joining such tenants as AGC Flat Glass, Alliance Inspection Management and IQuence in the park. David Friedman and Amit Hingorani of Friedman Integrated Real Estate Solutions represented ownership in the transaction. By Bryce Meyers
DexCom Signs 132,600-SF Sublease in San Diego
DexCom Inc. entered into a sublease with Entropic Communications LLC at 6350 Sequence Drive in San Diego.
DexCom, which develops and distributes continuous glucose monitoring systems for diabetes management, will occupy 132,600 square feet of space under the sublease which extends through January 2022. By Mark Heschmeyer
Farmers Insurance To Expand in Phoenix
Farmers Insurance has selected Phoenix as the location for a 1,000-employee operation and plans to build a new office complex at Pinnacle Peak Road and Interstate 17. The expansion could eventually raise Farmers' employee base in Phoenix from approximately 500 to more than 1,500 full-time employees.
Farmers currently operates a 500-employee claims operation in Phoenix, and the firm ranks as the second largest provider of automobile and homeowners insurance in the state. Staffing for the new jobs will occur in phases and could ultimately triple the number of full-time Farmers positions in the Phoenix area. The first group of employees could begin working in the new building by early next year.
Construction plans for the company's new Pinnacle Peak campus are still being finalized pending final approval of the agreement. Phoenix and Arizona officials approved an incentive package that includes $1,000 per employee earning over $44,000 a year toward workforce training. The incentive is capped at $500,000 over a 10-year period. Farmers also considered offers from Oklahoma, Kansas, Michigan and Texas for the new operation. By Mark Heschmeyer
Maker of MBTA’s Charlie Card Soon to Have New HQs
Scheidt & Bachmann USA, the maker of MBTA’s Charlie Card, will move its headquarters to 1001 Pawtucket Blvd. in Lowell, MA, where the company will consolidate two 54,000-square-foot spaces in Burlington to a single 72,000-square-foot by fall 2016.
The move will give Scheidt & Bachman, the North American subsidiary of Germany-based Scheidt & Bachman, an additional 10,000 square feet of manufacturing floor space, from 33,000 square feet to 43,000 square feet. Mark Mulvey of Cushman & Wakefield represented Scheidt & Bachman in negotiations. The company will remain in its current headquarters until October 2016. The new headquarters at 1001 Pawtucket Blvd. is owned by Farley White Management Co. By Jeff Johnson
Madwire Moving HQ from Loveland to Fort Collins
Madwire LLC, one of Northern Colorado’s fastest growing companies, signed a 66,443-square-foot lease at 3420 E. Harmony Rd. in Fort Collins. The new headquarters will consolidate three current Loveland sites to Building 5 of the former Hewlett-Packard campus.
The three-story, 187,792-square-foot office building was built in 1980. This location provides a campus setting with gym, bike lockers, cafeteria, and 6:1000 parking ratio. Travis Bontrager and Tom Grotewold of Rare Space, Inc. represented Madwire. Peter Kast with CBRE represented the landlord, Hewlett-Packard. By Nina Thilert
2U To Open New HQs To Accommodate Rapid Growth
2U Inc., a technology-enabled education firm, is moving its headquarters to Lanham, MD, where it is targeting adding more than 900 jobs in Prince George’s County over the next five years. The company is leasing space at 7900 Harkins Road, which is owned by Cohen Equities and located within the New Carrollton Transit Oriented Development site.
In 2015, 2U added New York University and Yale University to its partner portfolio and announced eight new 2U-powered programs to launch in 2016 and beyond. To assist with the new headquarters, the Maryland Department of Commerce is providing a $2 million conditional loan through the Maryland Economic Development Assistance Authority and Fund program. Additionally, Prince George's County is providing a $1.5 million conditional loan through its Economic Development Incentive Fund. By Mark Heschmeyer
SunTrust Extends 44,261-SF Lease in D.C.'s East End
After conducting a search for alternative space, SunTrust Bank has elected to re-up its 44,261-square-foot location at 1445 New York Ave. NW in downtown Washington, D.C. The bank signed an early 10-year renewal at the landmark building, located directly across the street from the White House and the U.S. Treasury in D.C.'s East End.
Originally constructed in 1888 with a nine-story addition completed in 1916, the property formerly served as the headquarters for National Savings & Trust Co. prior to SunTrust acquiring National Savings' successor, Crestar Financial, in 1985. Other tenants in the building include Living Social, the American Academy of Dermatology Association and Reinsurance Association of America, according to CoStar information.
Matt Sullivan and Jenna Polivka of Cushman & Wakefield represented SunTrust Bank in the transaction, while Carroll Cavanagh, Mark Klug, Abigail Todd and Emily Slingluff of CBRE represented building owner Ponte Gadea USA, which acquired the asset back in 2007. By Walt Brown
Alverez & Marsal Leases 42,000 SF in Bank of America Plaza
Alvarez & Marsal Real Estate Advisory Services leased 41,957 square feet within the Bank of America Plaza at 540 W. Madison St. in Chicago's West Loop.
The 30-story high-rise totals slightly more than 1.1 million square feet and is anchored by Bank of America as well as Marsh Inc. and DRW Trading Group. Alvarez & Marshal leased the entire 18th floor.
Robert Sevim with Savills Studley represented the tenant. Jamey Dix and Brian Whiting of the Telos Group negotiated the lease on behalf of ownership, a joint venture comprised of David Werner Real Estate, Carlton Associates and Third Millennium Group, which acquired the asset from Bank of America in 2012 for $350 million, according to CoStar information. By Eric Mitchell
Acro Services Corp. Renews HQ Space in Livonia
Acro Services Corp. has signed a renewal to maintain its headquarters within Cambridge Center West at 39209 W. 6 Mile Rd. in Livonia, MI. The privately-held staffing firm will remain in 34,655 square feet at the two-story, 78,978-square-foot office building, which was built in 1989 in the Southern I-275 Corridor submarket and last renovated in 2002.
Brady Blain with The Blain Group represented ownership in-house in the renewal.
By Jason Larbi
SunTrust Bank Leases 28,061 SF in Raleigh
IN addition to leasing space in Washington, D.C., SunTrust Bank finalized a lease for 28,061 square feet at Midtown Plaza, a 329,214-square-foot building currently under construction at 305 Church at North Hills Street in Raleigh, NC. SunTrust will occupy the entire 10th floor of the 12-story property once it is completed in spring 2017. The bank will be joined by Allscripts, a health care technology company that has leased the entire first through ninth floors.
Robert Van Wormer of Cushman & Wakefield represented SunTrust. The landlord, Kane Realty Corporation, was self-represented by Hooker Manning and Tish Turner. By Riley Walker
Nevakar Latest Addition to Bridgewater Campus’s Tenant Roster
Bio-pharmaceutical company Nevakar LLC agreed to a 26,500-square-foot-lease at the New Jersey Center of Excellence campus at 1041 Route 202/206 in Bridgewater, New Jersey. Nevakar’s lease brings the 850,000-square-foot Bridgewater campus to more than 70% occupancy.
Building owners Advance Realty and CrossHarbor Capital Partners were represented by the JLL team of Daniel Loughlin, international director, Robert Ryan and Craig Eisenhardt, senior vice presidents, and Scott Stange, vice president. Peter M. Dodds, principal, and Livingston Johnson, senior vice president, of Morford & Dodds Realty represented Nevakar in the transaction. By Mark Heschmeyer
Navitus Health Solutions Inks 26,000-SF Lease in Austin
Navitus Health Solutions will expand its footprint in Austin after the full-service pharmacy benefits company signed a six-year lease for 25,937 square feet within the Research Park Plaza in Austin's Northwest submarket. The firm will take space in Research Park V, a 172,854-square-foot, four-story office building slated to deliver this quarter as the fifth and final building of Atlanta-based Cousins Properties' (NYSE: CUZ
) five-building office park.
Navitus will be joined in the building by Planview, an Austin-based software company that agreed to a 10-year lease for 51,624 square feet back in October. Approximately 95,000 square feet of office space in the building remains available for lease. Stayton Wright and Tim Rikkers of Cresa negotiated the lease on behalf of Navitus, while Rachel Coulter and Kevin Kimbrough of JLL represented Cousins Properties. By Bryce Meyers