News Briefs
$31M Financing Closes for 578,000SF Mixed-Use Property
July 25, 2008
Village Hillcrest, a 578,000-square-foot mixed-use complex in San Diego's Hillcrest neighborhood, has been refinanced to the tune of $31 million. Acting on behalf of property owner SunCoast Properties Inc., Holliday Fenoglio Fowler L.P. orchestrated the financing deal, securing a 10-year, 5.97 percent fixed-rate loan from John Hancock Real Estate Finance. SunCoast plans to use the proceeds to prepay and retire an existing first lien financing, and to fund future growth opportunities. Developed in 1992, Village Hillcrest sits two miles from San Diego's central business district at the intersection of 5th Ave. and Washington St. The multi-structure property consists of a medical office and hospital building, a retail/office structure, two retail/residential buildings, two buildings consisting solely of retail space, and a four-story parking facility. Hillcrest Cinemas, 24-Hour Fitness, Scripps and three restaurants are among the businesses on the tenant roster.
Village Hillcrest, a 578,000-square-foot mixed-use complex in San Diego's Hillcrest neighborhood, has been refinanced to the tune of $31 million. Acting on behalf of property owner SunCoast Properties Inc., Holliday Fenoglio Fowler L.P. orchestrated the financing deal, securing a 10-year, 5.97 percent fixed-rate loan from John Hancock Real Estate Finance. SunCoast plans to use the proceeds to prepay and retire an existing first lien financing, and to fund future growth opportunities. Developed in 1992, Village Hillcrest sits two miles from San Diego's central business district at the intersection of 5th Ave. and Washington St. The multi-structure property consists of a medical office and hospital building, a retail/office structure, two retail/residential buildings, two buildings consisting solely of retail space, and a four-story parking facility. Hillcrest Cinemas, 24-Hour Fitness, Scripps and three restaurants are among the businesses on the tenant roster.
Off-Price Retailer to Join List of Anchors at 336,000SF Clermont Landing
July 25, 2008
Ross Dress for Less has signed a lease to occupy one of the anchor positions at Clermont Landing, a 366,000-square-foot in Clermont, Fla., at the intersection of Route 27 and Route 50, about 20 miles west of Orlando. Represented by The Shopping Center Group, the discount retailer signed a lease with property developer Weingarten Realty to occupy 30,200 square feet at the shopping center, which is scheduled to open its doors in March 2009. JC Penney, T.J. Maxx and Michaels will also serve as anchors, flanked by additional national retailers and lifestyle tenants.
Ross Dress for Less has signed a lease to occupy one of the anchor positions at Clermont Landing, a 366,000-square-foot in Clermont, Fla., at the intersection of Route 27 and Route 50, about 20 miles west of Orlando. Represented by The Shopping Center Group, the discount retailer signed a lease with property developer Weingarten Realty to occupy 30,200 square feet at the shopping center, which is scheduled to open its doors in March 2009. JC Penney, T.J. Maxx and Michaels will also serve as anchors, flanked by additional national retailers and lifestyle tenants.
Doors of 285-Room Sheraton Swing Open Near Disneyland
July 25, 2008
Kam Sang Co. Inc. has recently wrapped up development of Sheraton Garden Grove-Anaheim South Hotel. Straddling the Orange County cities of Garden Grove and Anaheim, the seven-story property at 12221 Harbor Blvd. sits only minutes from Disneyland and is within close proximity to major sports arenas Angels Stadium and the Honda Center. In addition to its 285 guestrooms, the hotel also features a fitness center and a restaurant. Starwood Hotels & Resorts Worldwide Inc. manages and operates Sheraton Garden Grove, the opening of which marks another step in Sheraton's biggest ever global expansion program; 54 hotels with a total of 20,000 guestrooms will open under the Sheraton flag by 2009.
Kam Sang Co. Inc. has recently wrapped up development of Sheraton Garden Grove-Anaheim South Hotel. Straddling the Orange County cities of Garden Grove and Anaheim, the seven-story property at 12221 Harbor Blvd. sits only minutes from Disneyland and is within close proximity to major sports arenas Angels Stadium and the Honda Center. In addition to its 285 guestrooms, the hotel also features a fitness center and a restaurant. Starwood Hotels & Resorts Worldwide Inc. manages and operates Sheraton Garden Grove, the opening of which marks another step in Sheraton's biggest ever global expansion program; 54 hotels with a total of 20,000 guestrooms will open under the Sheraton flag by 2009.
Vehicle Developer Finds a 37,500SF Home in Suburban Detroit
July 25, 2008
The automotive industry in Detroit may be battered but it's not beaten. U.K.-headquartered Gibbs Technologies, a globally recognized developer of high-speed vehicles for consumer and military use, has chosen a property in Auburn Hills as the home of its new North American headquarters. The company will settle into a 37,500-square-foot building on a two-acre site at 2046 Brown Road, about 35 miles from Detroit. From the city, county and state levels, officials campaigned heavily to bring Gibbs to Auburn, competing against other sites in the Great Lakes region, as well as in the southeast. The incentive package for the company included a 10-year $5.9 million tax credit that was just approved by the Michigan Economic Development Corporation. Gibbs plans to shell out over $13 million for equipment and infrastructure improvements at the site.
The automotive industry in Detroit may be battered but it's not beaten. U.K.-headquartered Gibbs Technologies, a globally recognized developer of high-speed vehicles for consumer and military use, has chosen a property in Auburn Hills as the home of its new North American headquarters. The company will settle into a 37,500-square-foot building on a two-acre site at 2046 Brown Road, about 35 miles from Detroit. From the city, county and state levels, officials campaigned heavily to bring Gibbs to Auburn, competing against other sites in the Great Lakes region, as well as in the southeast. The incentive package for the company included a 10-year $5.9 million tax credit that was just approved by the Michigan Economic Development Corporation. Gibbs plans to shell out over $13 million for equipment and infrastructure improvements at the site.
60,000SF Build-to-Suit Office Planned at 500-Acre Mixed-Use Project in Aurora
July 25, 2008
Development and construction firm Lauth has formed a joint venture with Lend Lease Communities to erect a 60,000-square-foot office building at Horizon Uptown, a 500-acre mixed-use development in Aurora, about 15 miles from Denver, Colo. Located within close proximity to Denver International Airport and Buckley Air Force Base, Horizon Uptown will ultimately encompass as much as 4 million square feet of office space, 1.3 million square feet of retail and 3,800 residential units. The three-story build-to-suit structure by Lauth and Lend Lease will occupy a five-acre parcel within the sprawling development and, adhering to Horizon Uptown's sustainable development mandate, will be an environmentally friendly facility, designed to achieve no less than LEED Gold certification. Design and permitting activities are on target to commence once the building reaches pre-leasing commitments for 30 percent of the building. .
Development and construction firm Lauth has formed a joint venture with Lend Lease Communities to erect a 60,000-square-foot office building at Horizon Uptown, a 500-acre mixed-use development in Aurora, about 15 miles from Denver, Colo. Located within close proximity to Denver International Airport and Buckley Air Force Base, Horizon Uptown will ultimately encompass as much as 4 million square feet of office space, 1.3 million square feet of retail and 3,800 residential units. The three-story build-to-suit structure by Lauth and Lend Lease will occupy a five-acre parcel within the sprawling development and, adhering to Horizon Uptown's sustainable development mandate, will be an environmentally friendly facility, designed to achieve no less than LEED Gold certification. Design and permitting activities are on target to commence once the building reaches pre-leasing commitments for 30 percent of the building. .
Turnkey Office Provider Opens 15,000SF Center in Cherry Creek
July 25, 2008
The Regus Group has leased 15,000 square feet at 100 Filmore Street in Cherry Creek, Colo., to house its newest turnkey office center. Located 10 minutes from downtown Denver and a half-hour from Denver International Airport, 100 Filmore is a 90,000-square-foot office building situated within a mixed-use development. Regus leased the Class A space from property owner Sturm Realty Group L.L.C. under a 10-year lease agreement, and will use the digs to provide offices, workstation and conference rooms, marking its 12th such location in the Denver area. Regus relied on CB Richard Ellis to orchestrate the transaction on its behalf, while the Frederick Ross Co. handled the marketing of the space on behalf of the landlord.
The Regus Group has leased 15,000 square feet at 100 Filmore Street in Cherry Creek, Colo., to house its newest turnkey office center. Located 10 minutes from downtown Denver and a half-hour from Denver International Airport, 100 Filmore is a 90,000-square-foot office building situated within a mixed-use development. Regus leased the Class A space from property owner Sturm Realty Group L.L.C. under a 10-year lease agreement, and will use the digs to provide offices, workstation and conference rooms, marking its 12th such location in the Denver area. Regus relied on CB Richard Ellis to orchestrate the transaction on its behalf, while the Frederick Ross Co. handled the marketing of the space on behalf of the landlord.
Suburban Atlanta Office Complex Commands $35M
July 25, 2008
Great Oaks Center, a 235,200-square-foot office complex in Alpharetta, Ga., has come under new ownership in a $34.8 million transaction. KBS REIT acquired the four-structure property from Grubb & Ellis Realty Investors, which sold Great Oaks on behalf of tenant-in-common investors after a four-year hold. Located on a 22-acre site within the 336-acre Royal 400 master planned office park, Great Oaks' first building consists of 33,200 square feet, while the remaining three structures feature, 58,800, 65,800 and 77,300 square feet, respectively. The property was developed in 2000, and today, boasts a 100 percent occupancy level with six businesses on the tenant roster. Cushman & Wakefield of Atlanta marketed the property.
Great Oaks Center, a 235,200-square-foot office complex in Alpharetta, Ga., has come under new ownership in a $34.8 million transaction. KBS REIT acquired the four-structure property from Grubb & Ellis Realty Investors, which sold Great Oaks on behalf of tenant-in-common investors after a four-year hold. Located on a 22-acre site within the 336-acre Royal 400 master planned office park, Great Oaks' first building consists of 33,200 square feet, while the remaining three structures feature, 58,800, 65,800 and 77,300 square feet, respectively. The property was developed in 2000, and today, boasts a 100 percent occupancy level with six businesses on the tenant roster. Cushman & Wakefield of Atlanta marketed the property.
NMHC Study Suggests Foreclosure Crisis Will Not Threaten Financial Health of Apartment Sector
July 24, 2008
By: Anuradha Kher, Online News Editor, Multi-Housing News
Homeowners of foreclosed properties have not been flocking to the apartment sector, according to new research by the National Multi Housing Council. As a result, the credit quality of prospective renters is holding steady, suggesting that the foreclosure crisis is not spilling over to threaten the financial health of the apartment sector, the study reveals. Conducted by Bruce Innes of Innes Works Consulting and presented in a new NMHC white paper titled Renter Credit Quality in a Volatile Housing Market, the report finds that evicted house owners represent only between two and six percent of apartment applicants. The report examines whether the overall quality of apartment applicants has declined because of the increasing number of households with some kind of “mortgage stress” in their credit history and finds that only 5.4 percent of rental applicants had a record of being 90 days or more past due on their home loan or in default on their mortgage.
For Full Story Please Go to www.multihousingnews.com
By: Anuradha Kher, Online News Editor, Multi-Housing News
Homeowners of foreclosed properties have not been flocking to the apartment sector, according to new research by the National Multi Housing Council. As a result, the credit quality of prospective renters is holding steady, suggesting that the foreclosure crisis is not spilling over to threaten the financial health of the apartment sector, the study reveals. Conducted by Bruce Innes of Innes Works Consulting and presented in a new NMHC white paper titled Renter Credit Quality in a Volatile Housing Market, the report finds that evicted house owners represent only between two and six percent of apartment applicants. The report examines whether the overall quality of apartment applicants has declined because of the increasing number of households with some kind of “mortgage stress” in their credit history and finds that only 5.4 percent of rental applicants had a record of being 90 days or more past due on their home loan or in default on their mortgage.
For Full Story Please Go to www.multihousingnews.com
Arch Insurance Leases 106,815 SF in Jersey City
July 24, 2008
Mack-Cali Realty Corp. said today that Arch Insurance Co. has leased 106,815 square feet at Harborside Financial Center Plaza 3 on the Jersey City waterfront. The lease carries a term of 15 years. Arch Insurance, a division of Arch Capital Group Ltd., is a provider of property, casualty and specialty insurance. Harborside Financial Center is a mixed-use complex with five class A office buildings totaling 3.1 million square feet. The office buildings are 99.6 percent leased. CB Richard Ellis represented the tenant in the transaction.
Mack-Cali Realty Corp. said today that Arch Insurance Co. has leased 106,815 square feet at Harborside Financial Center Plaza 3 on the Jersey City waterfront. The lease carries a term of 15 years. Arch Insurance, a division of Arch Capital Group Ltd., is a provider of property, casualty and specialty insurance. Harborside Financial Center is a mixed-use complex with five class A office buildings totaling 3.1 million square feet. The office buildings are 99.6 percent leased. CB Richard Ellis represented the tenant in the transaction.
Transwestern to Lease Crescent Property's Miami Center
July 24, 2008
Transwestern has been retained by Crescent Property Services Inc. as the exclusive leasing agent for Miami Center. The 34-floor building is a Class A high-rise office property within Miami’s Central Business District in Miami, Fla., and offers 782,211 of rentable square feet and a nine level garage with covered parking. The building is connected to the InterContinental Hotel and its current occupancy is over 90 percent with clients such as Citigroup, Ernst & Young, Stanford, Shutts & Bowen, and BNP Paribas.
Transwestern has been retained by Crescent Property Services Inc. as the exclusive leasing agent for Miami Center. The 34-floor building is a Class A high-rise office property within Miami’s Central Business District in Miami, Fla., and offers 782,211 of rentable square feet and a nine level garage with covered parking. The building is connected to the InterContinental Hotel and its current occupancy is over 90 percent with clients such as Citigroup, Ernst & Young, Stanford, Shutts & Bowen, and BNP Paribas.
Corning Reaches Agreement to Sell Steuben
July 24, 2008
Corning Inc. has reached an agreement to sell its Steuben Glass Division to Steuben Glass L.L.C., a newly formed affiliate of Schottenstein Stores Corp. The transaction is expected to be finalized in the third quarter. Steuben Glass will continue the Steuben operations in Corning, as well as retail sales in the New York City flagship store located at 667 Madison Avenue. Corning will maintain a 19.9 percent equity ownership stake in Steuben Glass. The sale price and other terms are not being disclosed.
Corning Inc. has reached an agreement to sell its Steuben Glass Division to Steuben Glass L.L.C., a newly formed affiliate of Schottenstein Stores Corp. The transaction is expected to be finalized in the third quarter. Steuben Glass will continue the Steuben operations in Corning, as well as retail sales in the New York City flagship store located at 667 Madison Avenue. Corning will maintain a 19.9 percent equity ownership stake in Steuben Glass. The sale price and other terms are not being disclosed.
Washington Square Shopping Center Sold in Palm Desert
July 24, 2008
On behalf of the seller, a local shopping center developer, and the buyer, a TIC sponsor, Marcus & Millichap Real Estate Investment Services has arranged the sale of Washington Square, a 49,972-square foot shopping center in Palm Desert, Calif. Located at the northwest corner of Washington and Market streets, the shopping center is situated on 6.17 acres. Built in 2007, Washington Square is directly across from the Stater Brothers shopping center and near the Del Webb Sun City housing community.
On behalf of the seller, a local shopping center developer, and the buyer, a TIC sponsor, Marcus & Millichap Real Estate Investment Services has arranged the sale of Washington Square, a 49,972-square foot shopping center in Palm Desert, Calif. Located at the northwest corner of Washington and Market streets, the shopping center is situated on 6.17 acres. Built in 2007, Washington Square is directly across from the Stater Brothers shopping center and near the Del Webb Sun City housing community.
Kempner to Depart MBA, Courson to be Named New COO
July 23, 2008
Jonathan Kempner will be stepping down from his role as president and chief executive officer of the Mortgage Bankers Association on December 31. Kempner joined the company in March 2001 to lead the firm through a turnaround in its operations. Under his leadership, the association doubled its revenues and operating reserve fund.
In a release Kempner said "This has been an extremely intellectually stimulating and rewarding period in my professional life. Navigating the highs and lows of the real estate cycles, with a first rate leadership and wonderful membership, afforded me a rare opportunity to contribute to one of the most important industries in our society. I am very proud of the extraordinary staff I have helped assemble at MBA, as my colleagues' dedication, intelligence and expertise make a true difference in the overall quality of life for many Americans. MBA's mission, I am convinced, will be enhanced with new leadership, and on a personal level, I very much look forward to a new position of leadership myself after nearly 8 wonderful years at MBA."
Addition
Additionally, John A. Courson will be named Chief Operating Officer of the Mortgage Bankers Association during the transition period, effective August 1. Courson will become President of MBA on January 1, 2009.
Jonathan Kempner will be stepping down from his role as president and chief executive officer of the Mortgage Bankers Association on December 31. Kempner joined the company in March 2001 to lead the firm through a turnaround in its operations. Under his leadership, the association doubled its revenues and operating reserve fund.
In a release Kempner said "This has been an extremely intellectually stimulating and rewarding period in my professional life. Navigating the highs and lows of the real estate cycles, with a first rate leadership and wonderful membership, afforded me a rare opportunity to contribute to one of the most important industries in our society. I am very proud of the extraordinary staff I have helped assemble at MBA, as my colleagues' dedication, intelligence and expertise make a true difference in the overall quality of life for many Americans. MBA's mission, I am convinced, will be enhanced with new leadership, and on a personal level, I very much look forward to a new position of leadership myself after nearly 8 wonderful years at MBA."
Addition
Additionally, John A. Courson will be named Chief Operating Officer of the Mortgage Bankers Association during the transition period, effective August 1. Courson will become President of MBA on January 1, 2009.
GPX Completes Capital Improvement Plan for Stillwell Apartment Portfolio
July 23, 2008
By: Anuradha Kher, Online News Editor, Multi-Housing News
GPX Realty Partners L.P. completed a capital improvement program across its Stillwell Apartment portfolio, the company announced. The portfolio consists of five communities totaling 309 units across 20 buildings and is located in Montgomery and Delaware counties, Pa. GPX Realty Partners acquired the portfolio last June. The capital improvements made throughout the five developments include upgraded unit interiors, from new windows to new kitchens; refreshed building exteriors; new community signage; extensive landscaping; new roofing systems; parking lot and driveway repairs; and electrical and lighting work. The Stillwell Apartment portfolio is comprised of Concord Court in Aston, Pa.; Livingstone, Oak Terrace and Wellington in Hatboro, Pa. and Longford in Ambler, Pa.
For Complete Story Please go to www.multihousingnews.com
By: Anuradha Kher, Online News Editor, Multi-Housing News
GPX Realty Partners L.P. completed a capital improvement program across its Stillwell Apartment portfolio, the company announced. The portfolio consists of five communities totaling 309 units across 20 buildings and is located in Montgomery and Delaware counties, Pa. GPX Realty Partners acquired the portfolio last June. The capital improvements made throughout the five developments include upgraded unit interiors, from new windows to new kitchens; refreshed building exteriors; new community signage; extensive landscaping; new roofing systems; parking lot and driveway repairs; and electrical and lighting work. The Stillwell Apartment portfolio is comprised of Concord Court in Aston, Pa.; Livingstone, Oak Terrace and Wellington in Hatboro, Pa. and Longford in Ambler, Pa.
For Complete Story Please go to www.multihousingnews.com
HUD Modernizes FHA with LIHTC Program
July 23, 2008
By: Anuradha Kher, Online News Editor, Multi-Housing News
The U.S. Department of Housing and Urban Development y issued the Mortgagee Letter 2008-19, streamlining the processing of Federal Housing Administration multifamily insurance applications with Low Income Housing Tax Credits. The Mortgagee Letter includes important changes to FHA processing, which will provide flexibility and cut costs, making FHA insurance a competitive financing vehicle for affordable rental properties with Low Income Housing Tax Credits. Other changes introduced by the Mortgagee Letter permit firm commitments to be conditioned, under certain defined circumstances, upon HUD-2530 approval. This approval must be received prior to initial endorsement, but the ability to condition firm commitments will provide timing flexibility to transactions and will improve borrowers’ chances of obtaining favorable rate locks and equity pricing. In addition, the Mortgagee Letter requires the designation of a LIHTC Coordinator in each Multifamily Hub and Program Center to work with credit allocation agencies and developers to better synchronize tax credit funding cycles with FHA’s application process.
For Complete Story Please go to www.multihousingnews.com
By: Anuradha Kher, Online News Editor, Multi-Housing News
The U.S. Department of Housing and Urban Development y issued the Mortgagee Letter 2008-19, streamlining the processing of Federal Housing Administration multifamily insurance applications with Low Income Housing Tax Credits. The Mortgagee Letter includes important changes to FHA processing, which will provide flexibility and cut costs, making FHA insurance a competitive financing vehicle for affordable rental properties with Low Income Housing Tax Credits. Other changes introduced by the Mortgagee Letter permit firm commitments to be conditioned, under certain defined circumstances, upon HUD-2530 approval. This approval must be received prior to initial endorsement, but the ability to condition firm commitments will provide timing flexibility to transactions and will improve borrowers’ chances of obtaining favorable rate locks and equity pricing. In addition, the Mortgagee Letter requires the designation of a LIHTC Coordinator in each Multifamily Hub and Program Center to work with credit allocation agencies and developers to better synchronize tax credit funding cycles with FHA’s application process.
For Complete Story Please go to www.multihousingnews.com
Perkins+Will Completes Dockside Green Residential Phase I
July 23, 2008
The completion of the highest-scoring LEED Platinum Certified building on record, Dockside Green Residential Phase I, located in Victoria, British Columbia, marks its fourth LEED Platinum Certified project and Perkins+Will’s 29th LEED Certified project. In addition to designing Phase 1, Perkins+Will was responsible for the design of the master plan for the entire 15-acre mixed-use Dockside Green development, which is expected to become the first LEED Platinum community in the world. Dockside Green Phase I, includes four detached buildings constructed over a common underground parking structure, including a nine-story residential tower with minor commercial units on the ground floors; a two-story townhouse; a six-story building with minor commercial units on the ground floor; and, a four-story residential building.
The completion of the highest-scoring LEED Platinum Certified building on record, Dockside Green Residential Phase I, located in Victoria, British Columbia, marks its fourth LEED Platinum Certified project and Perkins+Will’s 29th LEED Certified project. In addition to designing Phase 1, Perkins+Will was responsible for the design of the master plan for the entire 15-acre mixed-use Dockside Green development, which is expected to become the first LEED Platinum community in the world. Dockside Green Phase I, includes four detached buildings constructed over a common underground parking structure, including a nine-story residential tower with minor commercial units on the ground floors; a two-story townhouse; a six-story building with minor commercial units on the ground floor; and, a four-story residential building.
Jones Lang LaSalle Elects Staubach to its Board of Directors
July 23, 2008
Jones Lang LaSalle Inc. said today that Roger Staubach has been elected as a member of its Board of Directors. Staubach serves as the executive chairman of the firm's Americas region. He assumed that role on July 11, when Jones Lang LaSalle completed the previously announced transaction to merge its operations with The Staubach Co. Staubach founded The Staubach Co. in 1977 and served as its chairman and chief executive officer until June 2007, when he became its executive chairman.
Jones Lang LaSalle Inc. said today that Roger Staubach has been elected as a member of its Board of Directors. Staubach serves as the executive chairman of the firm's Americas region. He assumed that role on July 11, when Jones Lang LaSalle completed the previously announced transaction to merge its operations with The Staubach Co. Staubach founded The Staubach Co. in 1977 and served as its chairman and chief executive officer until June 2007, when he became its executive chairman.
Root Capture Leases Industrial Space in Brooklyn
July 23, 2008
Kalmon Dolgin Affiliates arranged a 20,000-square-foot lease for Root Capture Inc. at the property located at 131 North 14th Street in the Williamsburg neighborhood of Brooklyn, N.Y. Kalmon Dolgin represented both the tenant and the owner, North 14th Street Corp., in the transaction. The lease encompasses a 19,000-square-foot single-story warehouse and 1,000 square feet of outdoor space.
Kalmon Dolgin Affiliates arranged a 20,000-square-foot lease for Root Capture Inc. at the property located at 131 North 14th Street in the Williamsburg neighborhood of Brooklyn, N.Y. Kalmon Dolgin represented both the tenant and the owner, North 14th Street Corp., in the transaction. The lease encompasses a 19,000-square-foot single-story warehouse and 1,000 square feet of outdoor space.
ABA Breaks Ground on $25M Hyatt Place in Roseville
July 23, 2008
ABA Development broke ground today on the $25 million six-story, 151-room Hyatt Place in Roseville, Calif. Roseville’s Hyatt Place is the firm’s first of three hotels expected to break ground in 2008. Expected to open in the fall 2009, the building will be built on the new 15.5 acre Highland Reserve mixed use development. The 93,493-square-foot Hyatt will be located on Gibson Drive, adjoined to the Westfield Galleria Mall. The site is situated near the crossroads of Interstate 80 and Highway 65.
ABA Development broke ground today on the $25 million six-story, 151-room Hyatt Place in Roseville, Calif. Roseville’s Hyatt Place is the firm’s first of three hotels expected to break ground in 2008. Expected to open in the fall 2009, the building will be built on the new 15.5 acre Highland Reserve mixed use development. The 93,493-square-foot Hyatt will be located on Gibson Drive, adjoined to the Westfield Galleria Mall. The site is situated near the crossroads of Interstate 80 and Highway 65.
Studley Report Says Sublease Space Floods San Fran Office Market
July 23, 2008
A total of 700,000 square feet of sublease space flooded the San Francisco office market over the last three months, pushing the overall availability rate to 14.8 percent, an increase of 1.6 percentage points as compared to the first quarter of 2008. Also, Class A availability rose by 0.8 percentage points to 14 percent, according to the San Francisco Studley Report. Among the significant sublease opportunities currently available are Sharper Image’s 63,000 square feet at Hills Plaza, data security firm Vontu’s 54,000 square feet at 475 Sansome, and California Pacific Medical Center’s 55,692 square feet at 633 Folsom Street.
Overall asking rental rates were stable during the second quarter, inching up to $37.70 per square foot. Class A asking rents were also flat on average, equaling $46.49 per square foot. Leasing activity continued to decline in the second quarter. Four-quarter trailing leasing fell from 7.7 million square feet in the first quarter to 7.2 million square feet in the second quarter, an 11.2 percent drop from a year ago and 12 percent below the historical average of 8.2 million square feet. Firms are gravitating toward less expensive Class B and C space. The largest transaction of the quarter was McCann Erikson’s 112,000-square-foot lease renewal at 600 Battery Street. This was followed by DLA Piper’s 82,782-square-foot transaction at 555 Mission Street, the 550,000-square-foot project nearing completion, and Chevron’s 51,800-square-foot lease renewal at 345 California Street.
A total of 700,000 square feet of sublease space flooded the San Francisco office market over the last three months, pushing the overall availability rate to 14.8 percent, an increase of 1.6 percentage points as compared to the first quarter of 2008. Also, Class A availability rose by 0.8 percentage points to 14 percent, according to the San Francisco Studley Report. Among the significant sublease opportunities currently available are Sharper Image’s 63,000 square feet at Hills Plaza, data security firm Vontu’s 54,000 square feet at 475 Sansome, and California Pacific Medical Center’s 55,692 square feet at 633 Folsom Street.
Overall asking rental rates were stable during the second quarter, inching up to $37.70 per square foot. Class A asking rents were also flat on average, equaling $46.49 per square foot. Leasing activity continued to decline in the second quarter. Four-quarter trailing leasing fell from 7.7 million square feet in the first quarter to 7.2 million square feet in the second quarter, an 11.2 percent drop from a year ago and 12 percent below the historical average of 8.2 million square feet. Firms are gravitating toward less expensive Class B and C space. The largest transaction of the quarter was McCann Erikson’s 112,000-square-foot lease renewal at 600 Battery Street. This was followed by DLA Piper’s 82,782-square-foot transaction at 555 Mission Street, the 550,000-square-foot project nearing completion, and Chevron’s 51,800-square-foot lease renewal at 345 California Street.
Colliers International Introduces Urban Landlord Partners
July 23, 2008
Colliers International announces the formation of the Urban Landlord Partners, which focuses on the needs of institutionally owned assets located in downtown core markets. The group consists of 18 brokers in five key markets: San Francisco, Seattle, Los Angeles, Century City -- a commercial and residential district of Los Angeles -- and Portland, Oregon. By specializing in one service area, it allows the team to be more committed to the objectives of the client and the performance of the asset, opposed to the transaction. ULP was formed in response to client requests.
Colliers International announces the formation of the Urban Landlord Partners, which focuses on the needs of institutionally owned assets located in downtown core markets. The group consists of 18 brokers in five key markets: San Francisco, Seattle, Los Angeles, Century City -- a commercial and residential district of Los Angeles -- and Portland, Oregon. By specializing in one service area, it allows the team to be more committed to the objectives of the client and the performance of the asset, opposed to the transaction. ULP was formed in response to client requests.
Detroit Industrial Market Remains Strong
July 23, 2008
According to the Midyear 2008 National Industrial Report by Marcus & Millichap, industrial property operations in Detroit will be challenged this year, even as restructuring efforts by the Big Three automakers are beginning to ease, and the metro is projected to shed fewer positions than during each of the past two years. Out-of-state buyers may continue to increase their holdings in Detroit if a sufficient number of properties leased to stable companies under medium- to long-term commitments come to market. The report indicates that industrial construction is picking up, with 1.5 million square feet forecast to be added to the market. Vacancy is projected to end the year at 15 percent. Asking rents will hit $5.03 per square foot this year. Effective rents will end the year at $4.75 per square foot. Investors may want to consider traditional industrial strongholds in the Detroit metro area, such as the Interstate 96 corridor.
According to the Midyear 2008 National Industrial Report by Marcus & Millichap, industrial property operations in Detroit will be challenged this year, even as restructuring efforts by the Big Three automakers are beginning to ease, and the metro is projected to shed fewer positions than during each of the past two years. Out-of-state buyers may continue to increase their holdings in Detroit if a sufficient number of properties leased to stable companies under medium- to long-term commitments come to market. The report indicates that industrial construction is picking up, with 1.5 million square feet forecast to be added to the market. Vacancy is projected to end the year at 15 percent. Asking rents will hit $5.03 per square foot this year. Effective rents will end the year at $4.75 per square foot. Investors may want to consider traditional industrial strongholds in the Detroit metro area, such as the Interstate 96 corridor.
Magellan Development Launches Magellan Project Services
July 22, 2008
Magellan Development Group, a Chicago-based residential developer, has created a consulting service – Magellan Project Services – to assist financial institutions coping with development challenges or underperforming assets in the current difficult real estate environment. The company's vice president Brian Gordon has been named president of the new Magellan Project Services affiliate. Magellan is currently developing the $4 billion Lakeshore East, an award-winning 28-acre mixed-use community near Lake Michigan and the Chicago River. In addition to its headquarters base in Chicago, Magellan has also established a Western division for Project Services under the supervision of Robert Pontarelli, recently senior vice president of the Ryness Co.’s Urban Division. In that post Pontarelli has been involved in directing and consulting urban high-rise developers and sales and marketing teams in California, Oregon, Washington, Nevada, Arizona and Colorado.
Magellan Development Group, a Chicago-based residential developer, has created a consulting service – Magellan Project Services – to assist financial institutions coping with development challenges or underperforming assets in the current difficult real estate environment. The company's vice president Brian Gordon has been named president of the new Magellan Project Services affiliate. Magellan is currently developing the $4 billion Lakeshore East, an award-winning 28-acre mixed-use community near Lake Michigan and the Chicago River. In addition to its headquarters base in Chicago, Magellan has also established a Western division for Project Services under the supervision of Robert Pontarelli, recently senior vice president of the Ryness Co.’s Urban Division. In that post Pontarelli has been involved in directing and consulting urban high-rise developers and sales and marketing teams in California, Oregon, Washington, Nevada, Arizona and Colorado.
Whelan Associates Sells Medical Office Building in Easton
July 22, 2008
Whelan Associates L.L.C. sold One Washington Place, an office building in Easton, Mass., the company said today. Whelan Associates retains property management of the building following the sale. The property the first of several buildings being planned and constructed by Whelan Associates at this site on the Easton/Stoughton line. The 50,540-square-foot building, completed in 2007, is fully occupied. The building consists of seven medical office tenants. Additional buildings at Washington Place Medical Center are now in the construction and planning phases. Two Washington Place, a 42,000-square-foot building, is under construction and is 65 percent pre-leased. Completion of the building is expected in October 2008.
Three Washington Place, a 26,000-square-foot building, is fully permitted and is now being pre-leased. The sale of One Washington Place was brokered by Sea Watch Realty Inc.
Whelan Associates L.L.C. sold One Washington Place, an office building in Easton, Mass., the company said today. Whelan Associates retains property management of the building following the sale. The property the first of several buildings being planned and constructed by Whelan Associates at this site on the Easton/Stoughton line. The 50,540-square-foot building, completed in 2007, is fully occupied. The building consists of seven medical office tenants. Additional buildings at Washington Place Medical Center are now in the construction and planning phases. Two Washington Place, a 42,000-square-foot building, is under construction and is 65 percent pre-leased. Completion of the building is expected in October 2008.
Three Washington Place, a 26,000-square-foot building, is fully permitted and is now being pre-leased. The sale of One Washington Place was brokered by Sea Watch Realty Inc.
Kennedy Funding Closes Loan to National Retail Development Partners for Arizona Mixed-Use
July 22, 2008
Kennedy Funding Inc. closed a $11 million loan to National Retail Development Partners for site development and construction of a mixed-use office and retail complex in Scottsdale, Ariz. The developer has obtained site approval for Ironwood Festival, which will comprise six structures holding over 81,000 square feet of retail and 13,285 square feet of office space.
Kennedy Funding Inc. closed a $11 million loan to National Retail Development Partners for site development and construction of a mixed-use office and retail complex in Scottsdale, Ariz. The developer has obtained site approval for Ironwood Festival, which will comprise six structures holding over 81,000 square feet of retail and 13,285 square feet of office space.
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