The office sector has enjoyed a renewal of leasing activity in suburban Johnson County and South Kansas City, while the remainder of the market continues to be sluggish. Large tenants — 50,000 square feet and above — have accounted for most of the activity, whereas the smaller tenants have remained stagnant. The majority of tenants continue to renew their leases unless there is a compelling reason to relocate, such as a business expansion or downsizing. The economic uncertainty continues to be the most significant factor affecting the overall office market. However, many large space users have chosen to jump across the state line to relocate to either Kansas or Missouri due to the attractive economic incentives either state is offering. That trend has helped boost the overall leasing activity. In 2011, Johnson County and South Kansas City recorded net absorption of 646,000 square feet, which is remarkable considering the average for the entire Kansas City metro area since the late 1990s has been 401,000 square feet annually. This trend has continued in the first half of 2012 as tenants absorb large blocks of contiguous space. For example, Netsmart Technologies has leased 64,000 square feet in Overland Park, Kansas. Netsmart is …
COLUMBUS — Carter has started construction on the $50 million residential and retail project in Columbus Commons. The development, named Highpoint at Columbus Commons, will include 301 apartments and 23,000 square feet of retail on the ground floors, with plans for two restaurants. The project will total 325,000 square feet. The site, which Carter acquired from Capitol South, is part of a redevelopment of the former City Center mall that was demolished in 2009. Capitol South oversaw the development of the 9-acre public park and Carter's mixed-use project will be Phase II of the Columbus Commons development. Highpoint is expected to be complete at the end of 2013.
CHICAGO — DCT Industrial Trust has agreed to purchase four industrial assets totaling 563,000 square feet, including one facility in the Chicago O'Hare International Airport submarket. The Class A air freight buildings are situated in prime distribution locations. The additional three facilities are in the Los Angeles International Airport submarket. The portfolio is 99.6 percent occupied by eight tenants. The off-market transaction is expected to close in the fourth quarter of this year.
MILWAUKEE — Leopardo-Wisconsin has started construction on the new Tazinos Pizza and Salad Bistro in Milwaukee. Located on the first floor of the City Center at 735 N. Water St., the 4,000-square-foot restaurant will feature indoor and outdoor seating that can serve 173 patrons. Construction is scheduled for completion in October. The new location is the initial phase of Tazino's multi-phase expansion plans. The company currently owns and operates restaurants in Menomonee Falls, Oak Creek and Pleasant Prairie, Wis.
CHICAGO — Tandem Construction has started the second phase of a $4.2 million renovation of the Union League Boys & Girls Club at 2157 W. 19th St. in Chicago. Phase II includes a full remodelling of the original 19th century Club One building. Tandem completed Phase I, the construction of a four-story, 17,000-square-foot annex adjacent to the existing facility, in July. Dating back to the 1880s, Club One once housed a saloon and has been home to the Union League Boys & Girls Club since 1920. Tandem plans to renovate an exisiting gym, build a state-of-the-art technology center and remove an unused swimming pool in the basement to create a multipurpose space. The project is slated for completion at the end of this year.
FORT WAYNE, IND. — Halloween Express has signed a lease for 12,650 square feet of retail space in Georgtown Square, located at 6404 E. State Blvd. in Fort Wayne. Al Stovall of NAI Harding Dahm represented the landlord, Georgetown Members LLC, in the transaction. Russ Jehl, also of NAI Harding Dahm, represented the tenant.
COLUMBUS, IND. — Browning plans to construct a 468,000-square-foot manufacturing and assembly facility for The Phoenix Group in the Woodside Northwest Park in Columbus. The Phoenix Group is a supply chain management company with a client base that includes NTN Driveshaft and Alpine Electronics of America. The $15 million will be located on International Drive with direct access to I-65. The project is expected to break ground in October with completion scheduled for August 2013.
CHICAGO — Marcus & Millichap has arranged the $4 million sale of three apartment buildings in Chicago. The assets were located at 4709 W. Belmont Ave., 4844 West Henderson St. and 4539 W. Wellington Ave. The buildings feature 62 units and four street-level retail spaces. Joe Smazal and James Clough of Marcus & Millichap represented the seller, a local private investor. James Ziegler of Marcus & Millichap represented the buyer, a limited liability company.
CHICAGO — Retailers Salvatore Ferragamo and Ermenegildo Zegna have expanded and renewed leases at 645 N. Michigan Ave. in Chicago. Salvatore Ferragamo, which sells luxury handbags, shoes and small leather goods, renewed its ground-level lease for 2,700 square feet and expanded to the second floor, taking 3,300 square feet. Italian men's wear giant Ermenegildo Zegna renewed its ground-level lease for 2,400 square feet and also expanded to the second floor, taking 2,900 square feet. 645 North Michigan LLC and Nakash 645 North Michigan LLC own the property, which is managed by The Feil Organization. Robert Gibson of Cushman & Wakefield represented Salvatore Ferragamo in the transaction. Joan Siegel of Siegel Consultants represented Ermenegildo Zegna. The Feil Organization was represented in-house by Brian Feil and Ken Hanson.
ST. LOUIS, MO. — A $5.8 million renovation for the eighth floor of the Shoenberg Pavilion on the Barnes-Jewish Hospital north campus is under way. The 23,000-square-foot project will be be completed in four phases. The project will create a new 25-bed patient division while relocating an Intensive Care Unit to a different location on the eighth floor. McGrath & Associates is the general contractor and construction manager on the project, which is slated for completion in May 2013. OWH Inc. is the architect.