Weekly Wrap-Up of Largest Reported Office Leases Include: Salesforce, Volt, Northrop Grumman, Saltchuk, Uber, and more
Verily, formerly called Google Life Sciences, has subleased 407,000 square feet from Amgen to establish a separate headquarters in South San Francisco for the new Google division, which is gearing up to provide pioneering technology for medical research and devices.
Verily will occupy the former Onyx Pharmaceuticals office campus consisting of three Class A office buildings located at 249, 259, and 269 E. Grand Ave.
The planned move 30 miles north from Google's Mountain View, CA headquarters will place the new firm within a global hub for the biotech industry. It also takes a big chunk of the nearly 700,000 square feet of excess space Amgen Inc. (NASDAQ: AMGN
) is seeking to sublet in the area. Amgen closed its Onyx Pharmaceuticals subsidiary last year after acquiring the cancer drug developer in 2013 for $9.7 billion.
Alexandria Real Estate Equities, Inc., (NYSE: ARE
), a real estate investment trust that focuses on science and technology campuses in urban locations, owns the three buildings. The recently developed campus also has two land parcels representing nearly 400,000 square feet of potential expansion space.
An initial 400 Verily employees are expected to relocate to the new campus by the end of this year with the expectation that the total number at the location could grow to as many as 1,000. By Steve Wells
Already A Rising Force On San Francisco Skyline, Salesforce Prepares to Take Manhattan
In a significant expansion of its New York City operations, Salesforce.com, Inc. confirmed it will move into a new regional headquarters at Three Bryant Park in midtown Manhattan as part of a deal that includes naming rights for the 41-story skyscraper.
The fast-growing cloud-based business software company will add hundreds of new jobs in a doubling of its New York City workforce as it occupies into more than 210,000 square feet of leased space in the nearly 1.5 million-square-foot tower at 1095 Avenue of the Americas, to be known as Salesforce Tower New York.
Salesforce will begin moving into the tower built in 1972 by the end of the year. The building will receive a new lobby showcasing the company's latest technology, and an executive briefing center for interactive demonstrations of Salesforce products.
The building will be a smaller East Coast counterpart to the 1,017-foot, 71-story Salesforce Tower under construction by Boston Properties, Inc. in San Francisco's South of Market Area. The SOMA building will be the tallest building west of the Mississippi River when it opens in 2018.
Salesforce's announcement confirms market reports last summer by Crain's that Salesforce was in lease talks with Canada-based owner Ivanhoé Cambridge, which along with Callahan Capital Partners acquired the building from Blackstone Group for $2.2 billion in January 2015. Cushman & Wakefield serves as the landlord's leasing representative.
The Salesforce logo would replace the MetLife logo at the top of the building under the deal with the insurance giant and Ivanhoé, Bloomberg reported. MetLife last year signed a lease to increase occupancy at 200 Park Ave., the MetLife Building, to 500,000 square feet in a consolidation of its New York City operations.By Randyl Drummer
Volt Completes Sale Leaseback of Orange Corporate Park
An investment group led by Hines and managed by Oaktree Capital Management LP has acquired the Volt Corporate Park at 2401-2421 N. Glassell St. in Orange, CA, from a subsidiary of Volt Information Sciences, Inc.
The investment group, Glassell Grand Avenue Partners LLC, purchased the property for $35.85 million, or about $188 per square foot, as part of a sale-leaseback transaction with the a provider of staffing services, outsourcing and information technology services that has offices in New York City and Orange, CA.
Volt agreed to lease the entire 191,127-square-foot facility with an initial term through March 2031 with two five-year options. The property will continue to house approximately 400 Volt employees. Built in 1987, the two-story, four-building institutional office campus in the East Orange County submarket is close to the 91, 57 and 55 Freeways.
"The Volt Campus is an excellent addition to our Orange County portfolio and our first purchase in the City of Orange," said Ray Lawler, Hines' managing director who leads the firm’s Orange County development and investment office.
The Volt campus is the 13th property acquired by the Hines/Oaktree joint venture in Orange County, which also owns properties in Anaheim, Brea, Fullerton, Irvine, Newport Beach, Orange, Santa Ana and Yorba Linda. By Lyssa Woo
Northrop Grumman Leases 107,000 SF in Melbourne
Northrop Grumman Systems Corp., a global aerospace and defense technology company, signed a five-year lease for 107,419 square feet of office space
at 3990 Babcock St. in Melbourne, FL. Built in 1986, the single-story Washington Mutual Bldg. totals 107,419 square feet on 10.8 acres in the Brevard County submarket of Orlando.
Rob Beckner of Lightle Beckner Robinson, Inc. represented the landlord. The tenant was self-represented. By Terez Buford
Hudson Pacific Lands Saltchuk at New Pioneer Square Tower
Washington-based business of transportation and distribution companies Saltchuk Resources has signed a lease for 91,357 square feet in Hudson Pacific Properties' $93 million office development at 450 Alaskan Way in Seattle.
With an anchor tenant in place to occupy more than half the building, Seattle-based Hudson Pacific has commenced demolition of the site's existing parking structure and is planning delivery of the new building in the fourth quarter of 2017.
The planned eight-story, 167,000-square-foot office project is designed by NBBJ to receive LEED Gold certification and will feature large floor plates, a rooftop amenity center and deck, high-tech systems, ample amenities and transit accessibility.
David Abbott and Laura Ford of Colliers International represented the landlord. Wilma Warshak with Washington Real Estate Advisors LLC represented the tenant. By Matthew Jaso
Uber Takes More Space in Hudson Pacific's 1455 Market
Hudson Pacific confirmed that Uber Technologies is again expanding its headquarters at 1455 Market. The mobile ride-sharing app provider executed a 48,876-square-foot lease to backfill the remaining 24,438 square feet of former tenant Rocketfuel’s recently vacated space, as well as another 25,420 square feet formerly occupied by Bank of America on the 14th and 15th floors.
Uber is experiencing rapid growth, adding new office locations in Oakland and Mission Bay while awaiting the delivery of its 422,000-square-foot campus being developed by Alexandria Real Estate Equities.
In addition, Vevo, an online video and entertainment provider, leased 24,438 square feet on the 21st floor of 1455 Market, another space that had been occupied by Rocketfuel.
JD Lumpkin and Zach Siegel of Cushman & Wakefield represented the landlord in both transactions. By Anthony Edelstein
Kessler Foundation Leases 35,000 SF in East Hanover
Kessler Foundation signed an office lease for 35,247 square feet at 120 Eagle Rock Ave. in East Hanover, NJ.
The three-story building totals 177,820 square feet in the Eagle Rock Executive Park. Boxer Property owns the property, which was constructed in 1990. Griffin Capital Essential Asset REIT sold the building to Boxer in 2014. Boxer partnered with Kessler Foundation’s management team to find a space to locate its brain injury and neuroscience teams, plus program center staff and corporate offices. Kessler’s lease includes just over half of the first floor. Other tenants at this location include the Rocco Ortenzio Neuroimaging Center and the Gait Laboratory.
Kathryn Fansler and Rosemarie Heldman of Boxer Property represented the landlord in-house. By Christopher Anderson
HFRI Signs 31,505-SF HQ Lease in Elgin
HFRI, a healthcare revenue cycle management firm, will relocate its headquarters from Schaumburg to Elgin after agreeing to an 11-year lease for 31,505 square feet at 2500 Westfield Dr.
The new space will be able to accommodate future expansion as HFRI continues to experience steady growth. The firm plans to transition 250 employees to the new space, which nearly doubles the company's current office in Schaumburg, later this year.
Ultimately, the new office will be able to hold more than 400 employees.
Completed in 1981, 2500 Westfield Dr. totals 420,903 square feet over three stories within the Westfield Business Park in Chicago's Far Northwest submarket. Acquired by Adventus Realty Trust in 2012, the Class A building is anchored by J.P. Morgan Chase, which houses a large operations center within the complex.
Daniel Svachula, Michael Simpson and Connor Lund of Cushman & Wakefield represented Adventus, while Kyle Kamin and James Otto of CBRE represented HFRI in the transaction. By Sandro Cimic