The Phoenix office market ended the third quarter in a very strong position. Increasing momentum in the sector should continue into 2015. Healthier economic conditions, including a growing GDP and higher employment, are translating into increased market activity and confidence. The biggest take-away from Phoenix’s rebounding office sector is new office development, with several high-profile construction projects underway in the East Valley. Tower cranes dot the horizon along Tempe Town Lake in downtown Tempe. The largest project, State Farm’s Marina Heights, is under construction on its first phase, which includes two mid-rises totaling more than 1 million square feet. Additional phases will bring the project to more than 2 million square feet, making it the largest office project in Arizona. Hayden Ferry Lakeside III is under construction with a 10-story, 250,000-square-foot building on the lake. This is the third and final phase of this office project. Arizona State University has also jumped into the mix by announcing a huge 330-acre development on the south side of Tempe Town Lake. It is expected to incorporate athletic, commercial and residential projects at full build-out that will be utilized as a funding source for ASU Athletics. USA Place, a $400-million-plus development in downtown, …
PLYMOUTH, MINN. — CPA:17 – Global, a managed non-traded REIT of W. P. Carey Inc., has acquired a 182,000 square-foot, Class A office building for $34 million. The facility is located in Plymouth and will be leased on a long-term basis to Smiths Medical beginning in February 2015. Smiths Medical is a supplier of specialist medical devices, consumables and equipment for global markets and is one of the five divisions that form Smiths Group plc, a multinational diversified engineering company. The property will serve as Smiths Medical’s headquarters as part of a broader initiative to improve productivity and collaboration and reduce costs. The facility was constructed in 1999 as part of a mixed-use development that included retail, residential and restaurant space. The building includes modern infrastructure and features large lobbies and common areas.
ARLINGTON, VA. — Carr Properties has begun the demolition and pre-construction phase for a 175,000-square-foot, eight-story office building located at 2311 Wilson Blvd. in Arlington. The building, which is designed to achieve LEED Gold certification, will be ready for occupancy in 2017. The office building will feature street-level retail space, a conference room, restaurant and café, childcare facility, health club, bike room, rooftop terrace and an 18,000-square-foot urban park with gardens. Carr Properties has hired Spencer Stouffer, Krysta Herring and Phillip Thomas of Cassidy Turley to handle leasing the office building.
BLUE BELL, PA. — Keystone Property Group has unveiled VEVA, a 425,000-square-foot office complex in Blue Bell. Formerly known as Sentry Park West, the property features world-class lifestyle amenities and cutting-edge infrastructural upgrades. Situated on 16 acres on VEVA Boulevard, VEVA comprises seven mid-rise buildings, which have been completely renovated. The office campus is 83 percent leased by a variety of tenants, including Cigna, Citizens Bank, Fiberlink Communications, inVenity Health Clinical, Morgan Stanley Smith Barney, and Fesnak and Associates.
BOSTON — ADD Inc., now with Stantec, has completed the design for One Channel Center, the final phase of the Commonwealth Ventures’ 2.1 million-square-foot Channel Center in Boston. The eleven-story, 500,000-square-foot One Channel Center will be home to 4,000 employees of State Street Bank and is part of a multi-building master plan that includes a new two-acre park and a ten-level, 900-car garage. Located at One Iron St., the $175 million project features a two-story lobby and various green elements, including continuous insulation on the facades, efficient mechanical systems, recycled and local materials, and low VOC materials. The building is expected to attain LEED Silver certification upon completion. ADD Inc. recently joined Stantec’s Buildings Group, a team of more than 2,500 design and allied professionals.
CHESTERFIELD, MO. — The new $150 million Reinsurance Group of America (RGA) global headquarters will open this month in Chesterfield, a suburb of St. Louis. Fox Architects designed the 405,000-square-foot stone, glass and steel building, which is one of the largest projects in the St. Louis region since Centene Plaza was completed in 2010, and the largest local headquarters project in at least 20 years. The headquarters’ two five-story towers are linked by a two-story atrium lobby and amenities bar, which features 10,000 square feet of training facilities; a 7,500-square-foot fitness center; a 20,000-square-foot café, kitchen and barista; and a 500-seat cafeteria that can function as a 700-seat auditorium. The complex also includes 580,000 square feet of parking. Built on a 17-acre site, the complex will accommodate RGA’s workforce expansion over the next several years, and is master planned to include a third building for long-term growth. Fox Architects designed the interiors and was RGA’s consultant to international architectural firm Gensler on core and shell design. Clayco was the design-build contractor.
HOUSTON — Tanglewood Property Group has acquired 2000 Bering Drive in Houston. The 192,000-square-foot office building is located in the Tanglewood area just west of the Galleria. The property is 97 percent leased. This is Tanglewood’s second office building acquisition in 2014, the company purchased 5300 W. Sam Houston Pkwy. N., earlier this year. Henry Hagendorf and Cliff Rudolph represented Tanglewood in the acquisition. Houston-based Tanglewood Property Group owns and manages more than 1.4 million square feet of commercial office space, mostly in the uptown Galleria submarket of Houston.
SAN JOSE, CALIF. — KBS Capital Advisors has purchased Ten Almaden, a 309,255-square-foot office building in San Jose, for a reported $116.7 million. The Class A office tower is located at its namesake, 10 Almaden Blvd. Ten Almaden is situated near the San Jose Diridon Transit Station, which is serviced by Caltrain, Amtrak, ACE commuter rail, VTA light rail, bus lines and the planned California High-Speed Rail that will connect downtown San Jose to San Francisco and the peninsula. It is also near San Jose’s Norman S. Mineta International Airport, Interstates 280, 680, 880, US 101, and Highways 87 and 17. The LEED-Gold-certified office tower was built in 1988 and renovated in 2010. It features a three-story atrium and lobby, fitness center with outdoor pool, sauna, showers, a six-level parking structure and a café. Ten Almaden is currently 89 percent leased. Notable tenants include Citibank, Comcast, Robert Half International, Rosetta Marketing Group and Turner Construction Company. The seller, Equity Office Properties, was represented by HFF’s Steven Golubchik, Michael Leggett and John Simerlein.
MALVERN, PA. —Hayden Maguire Real Estate Fund has made its second acquisition. The fund acquired a 151,447-square-foot office building, located at 1200 Atwater Dr. in Malvern, for $23 million. The property features modern architectural design, light-filled lobbies under glass canopies and an on-site café. The property is situated on 388 acres surrounding an 80-acre spring-fed lake. Hayden Maguire Real Estate Investments and Maguire Investment Management are partners of the fund.
JACKSONVILLE, FLA. — Lingerfelt CommonWealth Partners has acquired Riverplace Tower, a Class A, 28-story office building in Jacksonville’s central business district. The 425,223-square-foot tower is located at 1301 Riverplace Blvd. The property was built in 1967 and renovated in 1994 and 2005. Gate Riverplace Co., a subsidiary of Gate Petroleum, sold the office tower to Lingerfelt CommonWealth. Riverplace Tower’s tenant roster includes Rogers Towers PA, Rayonier Inc., Adecco USA and ClubCorp USA Inc. The buyer has selected a property management affiliate, CommonWealth Partners, to manage the property. JLL will handle leasing the property.