Office

Manulife US REIT Sells 400 Capitol Mall Office Tower in Sacramento for $117M

by Amy Works October 31, 2024

SACRAMENTO, CALIF. — Manulife US REIT has completed the disposition of 400 Capitol Mall, a 29-story Class A office tower in downtown Sacramento. PacWest Equities, an affiliate of Buzz Oates, acquired the asset for $117 million. The 501,308-square-foot property has maintained a nearly 90 percent historical occupancy over the past 25 years. Tenants include Wells Fargo, Morgan Stanley, PWC, Deloitte and Orrick. The tower features a five-story, 1,094-space parking garage, valet parking, car detailing, a fitness center with locker rooms and saunas, a private outdoor pool, conference center facility and a high-end ground-floor restaurant and café. Adam Lasoff, Rob Hielscher, Erik Hanson and Caroline Reynolds of JLL Capital Markets Investment Sales and Advisory team represented the seller in the deal.

October 31, 2024

Acquisitions Illinois Midwest Office

Glenstar Recapitalizes Presidents Plaza Office Complex in Chicago

by Kristin Harlow October 31, 2024

CHICAGO — Glenstar has recapitalized Presidents Plaza in Chicago with a private investor. The two-tower office complex is situated near O’Hare International Airport at 8600-8700 W. Bryn Mawr Ave. In addition to purchasing the 831,442-square-foot complex for $62 million, Glenstar and its equity partner have set aside capital to fund tenant improvements. Additionally, Glenstar has allocated nearly $16 million to build spec suites along with upgrading amenities and common areas. Initial plans call for a golf simulator and common area improvements to round out the amenities added during the property’s recent $34 million renovation. Upgrades included a redevelopment of the three-story atrium lobby, three-level health club, fully renovated lounge, café with full seating and 6,300-square-foot conference center. Dan Deuter, Tom Sitz and Cody Hundertmark of Cushman & Wakefield represented the seller in the sales transaction, which closed Oct. 22. Glenstar has served as the property and asset manager of Presidents Plaza since 2006.

October 31, 2024

Healthcare Loans Michigan Midwest Office

PACE Loan Group Provides $3.3M C-PACE Loan for Renovation of Samaritan Center in Detroit

by Kristin Harlow October 31, 2024

DETROIT — PACE Loan Group has provided a $3.3 million C-PACE loan for the renovation of the Samaritan Center in Detroit. The four-building business complex features more than 525,000 square feet. The loan covers 60 percent of the energy-efficiency project’s $5.5 million renovation, which will update the main building and is expected to reduce annual repair expenses and utility costs. Redeveloped from a former hospital, Samaritan Center was founded to help spur redevelopment on the east side of Detroit and is owned by SER Metro-Detroit. At least 65 percent of the space is leased to nonprofits, which aim to promote education and physical and mental well-being in the community. Currently, the property is used for medical services, senior living, education, social services and office space. The C-PACE proceeds will be used to finance qualifying energy-efficiency improvements, including LED lighting, HVAC, chillers and boilers, upgraded building control systems and new elevators. These improvements are expected to save $328,370 annually in energy costs and reduce annual maintenance costs by $250,000. SER Metro-Detroit also received a $2 million grant from the State of Michigan to update the building façade, replace large sections of the roof and rebuild air handlers.

October 31, 2024

Leasing Activity Midwest Minnesota Office

Gamer Packaging Signs 20,192 SF Office Lease in Minneapolis

by Kristin Harlow October 30, 2024

MINNEAPOLIS — Gamer Packaging has signed a 20,192-square-foot office lease at Fifth Street Towers in Minneapolis. The full-service packaging company is moving its headquarters to the entire 19th floor of 100 S. Fifth St., the companion tower to 150 S. Fifth St. Reed Christianson and Trinette Wacker of Transwestern Real Estate Services handle leasing for the 1 million-square-foot office complex, which features amenities such as Sculpt Fitness, Connect Lounge and Sphere Bar + Restaurant. Gamer Packaging is currently designing its new headquarters and expects to take occupancy in the second half of 2026. Tad Jellison, John Lorence and Blake Hastings of CBRE represented Gamer Packaging.

October 30, 2024

Connecticut Leasing Activity Northeast Office

Norseland Inc. Signs 11,353 SF Office Lease in Norwalk, Connecticut

by Taylor Williams October 30, 2024

NORWALK, CONN. — Norseland Inc., a subsidiary of Norway’s largest dairy cooperative, has signed an 11,353-square-foot office lease in the coastal Connecticut city of Norwalk. The company is relocating its U.S. headquarters from nearby Darien to Merritt 7 Corporate Park. John Hannigan and James Riffice of locally based brokerage firm Choyce Peterson represented the tenant in the lease negotiations. Betsy Buckley, Ed Tonnessen and Gil Ohls of JLL, along with internal agent JoAnn McGrath, represented the landlord, a partnership between Clarion Partners and Marcus Partners.

October 30, 2024

Acquisitions California Office Western

Ambient Communities Buys 250,000 SF Office Tower in Downtown San Diego

by Amy Works October 29, 2024

SAN DIEGO — Ambient Communities, a San Diego-based real estate company, has acquired 530 B Street, a 24-story office tower in downtown San Diego’s B Street corridor, from an undisclosed seller for $27.5 million, or $110 per square foot. Completed in 1966, the 250,000-square-foot tower was known as the Union Bank building until U.S. Bank acquired the bank in 2022. Matt Carlson, Hunter Rowe, Camille Doan, Matt Pourcho and Anthony DeLorenzo of CBRE represented the seller, while Mickey Morera of Kidder Mathews represented the buyer in the transaction.

October 29, 2024

Leasing Activity Office Texas

FUSE Workspace Opens 33,000 SF Coworking Space in East Austin

by Taylor Williams October 29, 2024

AUSTIN, TEXAS — FUSE Workspace, a Texas-based provider of flexible workspace solutions, has opened a 33,000-square-foot space at 2105 E. MLK Blvd. in East Austin. The space is the company’s fourth in Austin and offers an array of private offices, dedicated individual desks, enterprise suites and meeting rooms. CB Capital owns the building. Work on the project began in April.

October 29, 2024

Leasing Activity New York Northeast Office

Blue Owl Capital Signs 238,673 SF Office Lease Extension, Expansion in Midtown Manhattan

by Taylor Williams October 29, 2024

NEW YORK CITY — Blue Owl Capital has signed a 238,673-square-foot office lease extension and expansion at 375 Park Avenue in Midtown Manhattan. The global alternative asset manager first committed to 375 Park Avenue, which is known locally as The Seagram Building, in 2022 with a 137,600-square-foot lease across floors two through five. In 2023, Blue Owl added 31,597 square feet to its footprint via occupancy of the entire sixth floor. The latest lease expansion totals 70,076 square feet across floors 16 through 19. Mark Weiss of Cushman & Wakefield represented the tenant in the lease negotiations. A.J. Camhi and Paul Milunec represented the landlord, RFR Realty, on an internal basis.

October 29, 2024

Louisiana Market Reports Office Southeast Southeast Market Reports

Challenges Unfortunately Outweigh Opportunities for New Orleans Office Market

by John Nelson October 29, 2024

A combination of short sales, declining occupancy rates, loan concerns and migration to suburban offices contribute to uncertainty in the New Orleans office market. As we approach the fourth quarter of this year and begin to reflect back on the market in 2024, the challenges unfortunately outweigh the opportunities. Two notable cases include The DXC Technology Center and The Energy Centre. The DXC Technology Center, located at 1615 Poydras St. in the Central Business District (CBD), a once-prized office tower anchored by Freeport McMoRan, sold for less than $37 per square foot. The building, over 500,000 square feet, traded for $18.5 million, significantly below the remaining debt on the property. The New Orleans Police Department recently signed a lease to occupy approximately 45,000 square feet in the building, which lessens the steep decline in the building’s value. The Energy Centre, located at 1100 Poydras St., is one of the most desirable and best-performing Class A towers in the CBD. It entered receivership, but the building is back on track and is rumored to be nearing a sale. The building owner, The Hertz Group, controls four additional Class A office towers on Poydras St. (400, 650, 701 & 909 Poydras St.), …

October 29, 2024

Emerging Trends Report Predicts Rebound in Transaction Volume in 2025 as Capital Markets Are ‘Poised for Recovery’

by John Nelson October 29, 2024

LAS VEGAS — At the September meeting of the Federal Open Market Committee (FOMC), the Federal Reserve lowered the federal funds rate by 50 basis points, which is the first easing of monetary policy in four years. This move lowered the short-term interest rate to a target range of 4.75 to 5 percent. Elevated borrowing costs have stifled commercial real estate transaction volumes the past couple years as buyers and sellers found that values were a moving target. Now with a reduction in interest rates, many real estate professionals expect transaction volume to rebound at least moderately. “In 2025, we expect lower interest rates will reduce borrowing costs, aid in price discovery and ultimately encourage an uptick in [commercial real estate] transactions,” said Angela Cain, global CEO of the Urban Land Institute (ULI). Cain’s comments came in a prepared statement to summarize the findings of Emerging Trends in Real Estate 2025, an annual report jointly produced by PwC US and ULI. The report was published in conjunction with ULI’s Fall Meeting, which is taking place this week at Resort World Las Vegas. Cain said that the real estate professionals surveyed for the report relayed that sentiment is improving, though many remain cautious. …

October 29, 2024

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