The Omaha office market is poised for a significant increase in Class A inventory. Currently, there are planned developments in various stages that would add more than 3 million square feet to the marketplace. Slated for development is the Fountain West Office Park at 192nd Street and West Dodge Road. The developer, R&R Realty Group, has publicly committed to building the first of a group of speculative buildings. It will be a Class A, 75,000-square-foot building. Construction will likely begin in the second quarter of this year and be completed in about 18 months. The total inventory of the market today is just shy of 21 million square feet. This figure is comprised of non-owner occupied, non-medical office product. The 3 million square feet of planned development is unprecedented in Omaha, so why is the pipeline expanding now? (To view larger version of chart, click here.) A Historical Perspective For the past three years, the Omaha office market has recorded average annual absorption of 200,000 square feet. Prior to the recession, our pace was nearly 300,000 square feet yearly. While the pace of absorption has been healthy for a mid-market city like Omaha, new development has remained relatively slow. The …
Midwest
It’s an incredible time to be in Lincoln, as the city’s new skyline conveys the momentum and energy Lincoln is experiencing. Four years ago, when many cities were paralyzed by the economic climate, Lincoln voters put the city on a new path by voting “yes” to move forward on the West Haymarket Redevelopment Project. In August 2013, the new 16,000-seat Pinnacle Bank Arena opened its doors. The $344 million West Haymarket project envisioned the redevelopment of 400 acres of blighted and underutilized property bordering the popular Haymarket Landmark District and downtown core. The area we call the “Haymarket” sits along the western edge of the central business district. It was a place for industrial and warehousing uses back in the early 19th and 20th centuries and served the adjacent Burlington and Missouri River Railroad yard. Nearly 100 years after the rise of the Haymarket, many buildings were vacated and boarded up as the last manufacturer, Russell Stover, pulled its operations from Lincoln. This eight-block district, however, was viewed as an important element to Lincoln’s history, and the city designated it as a Landmark District in 1982. A New Beginning In 1985, the Lincoln Haymarket Development Corp. was formed as a …
CHICAGO — Carter Validus Mission Critical REIT Inc. (CVMC) has acquired a data center facility in Northlake, a suburb of Chicago, for $211.7 million. Tampa, Fla.-based CVMC purchased the CH2 Data Center from Ascent, a provider of comprehensive data center solutions. CVMC will provide new capital for the continued expansion of the 250,000-square-foot, multi-tenant data center. St. Louis-based Ascent will continue to manage all CH2 data center development, design, construction, engineering and operational services.
MADISON HEIGHTS, MICH. — Bernard Financial Group has arranged a $16 million CMBS loan to refinance Madison Place Shopping Center. The retail property contains 235,502 square feet and is located in Madison Heights, a suburb of Detroit. Tenants at the shopping center include Dunham’s Sports, Jo-Ann Fabric and Craft Stores, David’s Bridal, OfficeMax, Michaels, Dollar Tree and AMC Theatres. The property is shadow anchored by Target and Big Lots. Dennis Bernard and Kevin Kovachevich originated the loan for the borrower, Madison Place LLC.
FARMINGTON HILLS, MICH. — NAI Farbman has arranged the lease of a 14,240-square-foot office building in Farmington Hills for Schneider Resources Inc., a national provider of truckload, logistics and intermodal services. Schneider will occupy space in the 696 Centre located at 27555 Farmington Road. 696 Centre is a 266,000-square-foot, newly renovated Class A office building that features a full-service gym and cafeteria. Schneider Resources plans to utilize the space as a regional corporate sales office. Ninety employees will work out of Schneider’s new location. Jeff Cavazos and Laney Cavazos of NAI Farbman represented the tenant. Farmington Road Office Building LLC is the landlord.
SCHAUMBURG, ILL. — CBRE has arranged the lease of a 10,681-square-foot office space in Schaumburg for Trelleborg Sealing Solutions, a global supplier of polymer-based critical sealing solutions. The company will occupy space in the Woodfield Preserve Office Center located at 20 N. Martingale Road. The firm is relocating its Midwest sales office from a site in Hanover Park, Ill. Bill Saviski of CBRE represented Germany-based Trelleborg Sealing Solutions in the transaction. Rob Graham of CBRE represented the landlord.
DAVENPORT, IOWA — Love Funding has arranged a $7.5 million HUD loan for the Union Arcade commercial building in downtown Davenport. The loan will be used to convert Union Arcade into a mixed-use, market-rate multifamily residential and retail space. Harry Cheatham of Love Funding’s St. Louis office secured the HUD loan for the building’s owner, Financial District Properties. The non-recourse loan features a 40-year term. The lower level of the Union Arcade was built in 1915 to house the Union Savings Bank and Trust. The upper level was built in 1924. The property has been awarded federal and state historic tax credits. Once the renovation is complete, Union Arcade will offer 68 rental units along with 8,100 square feet of commercial space.The historic building’s renovation is a part of the revitalization of downtown Davenport. Financial District Properties, which bought the building in 2012, is also investing $10 million to create 29 apartments in Davenport’s Wells Fargo building downtown.
ELGIN, ILL. — Arthur J. Rogers & Co. has arranged the lease of four properties in Elgin, located approximately 45 miles northwest of Chicago. The properties are located within the Rogers Business Parke-Elgin, a development consisting of four buildings totaling 232,000 square feet. The leases include a 9,890-square-foot property at 2521 Technology Drive for Precision Dormer LLC, a manufacturer and seller of high-speed steel and carbide round tools; a 4,500-square-foot property at 2531 Technology Drive for Intellisource Inc., a graphic production and promotional company; a 3,900-square-foot property at 2541 Technology Drive for Winegard Co., a manufacturer of television reception products; and a 1,690 square-foot property at 2521 Technology Drive for ONSITE Woodwork, a family-owned premier woodworking company. Chris Zannis of Arthur J. Rogers & Co. negotiated the leases. Facilities at Rogers Business Parke-Elgin offer both 100 percent office suites and mixed-use office/warehouse space, with units ranging from 2,000 to 58,000 square feet.
ZIMMERMAN, MINN. — Marcus & Millichap has brokered the $5 million sale of The Pines I & II, a 64-unit apartment property in Zimmerman, a rural community located approximately 42 miles northwest of Minneapolis. The address of the Pines I & II is at 25685 3rd St. West. The property, which was built in two phases in 2005 and in 2006, features several different floor plans. Amenities include attached covered garages, a large community room and fitness center. The property closed at below a 7 percent cap rate. Michael Ahles, Mox Gunderson and Chris Collins of Marcus & Millichap’s Minneapolis office represented the seller, a developer, and the buyer, a partnership.
BOLINGBROOK, ILL. — Lee & Associates has arranged the lease of 42,680 square feet in Bolingbrook. LMI Solutions, a manufacturer and distributor of replacement toner cartridges, will occupy space at 606 Territorial Drive. Tim McCahill and Brian Vanosky of Lee & Associates represented the tenant. Jason West and Sean Henrick of Cushman & Wakefield represented the landlord, TA Associates Realty, in the transaction.