Office

UCLA Acquires Former Westside Pavilion Mall in Los Angeles for $700M, Unveils Plans for Research Park

by Katie Sloan January 4, 2024

LOS ANGELES — The University of California, Los Angeles (UCLA) has acquired One Westside and Westside Two, located two miles from its Westwood campus in Los Angeles. A joint venture between Hudson Pacific Properties (NYSE: HPP) and Macerich (NYSE: MAC) sold the assets for $700 million. The 700,000-square-foot property — located at 10800, 10830 and 10850 W. Pico Blvd.— was formerly occupied by Westside Pavilion mall, a city landmark that served as the backdrop for a number of movies and television shows since its opening in 1985. Hudson Pacific and Macerich began redevelopment efforts at the property in March 2018, converting the mall into a Class A office campus. Google inked a lease in January 2019 to occupy the entire campus under a 14-year term, which was to commence upon completion of the project in 2022. Details of the termination of Google’s lease at the property were not disclosed. The university plans to convert the property into UCLA Research Park, which will house the California Institute for Immunology and Immunotherapy at UCLA and the UCLA Center for Quantum Science and Engineering. The acquisition was made possible by a $500 million investment from the state of California, $200 million of which …

January 4, 2024

Larry Gautier NAI College Campus Land Solutions quote

Acquisitions Content Partner Features Leasing Activity Midwest NAI Northeast Office Southeast Texas Western

Adaptive Reuse Extends to Higher Education Real Estate Amid Online Learning Shift

by Sarah Daniels January 4, 2024

The term “adaptive reuse” in real estate circles typically conjures images of repurposing old, obsolete commercial buildings. Meanwhile, academic buildings, administrative offices and other properties on college campuses rarely come to mind. But NAI has noted a growing need among higher learning institutions with vacant or underused assets, particularly as a result of growing online learning options, says Larry Gautier, senior vice president of NAI Miami | Fort Lauderdale. As a result, the brokerage is focused on finding solutions for schools. “NAI hasn’t historically been involved with higher institutions of learning — we’ve typically focused on conventional real estate transactions,” Gautier acknowledges. “But a few years ago, when students weren’t going in to class, colleges and universities were facing a challenge: what do you do with facilities — that were built for thousands of students — in a remote-learning setting? For many schools, remote learning is here to stay.” Options include leasing buildings to commercial users or entering a joint venture with, for example, an aerospace or engineering company for educational programs, he adds. Colleges that suddenly have vast unused parking lots could also enter into long-term leases with multifamily, office or mixed-use developers. “Our position is to help these schools create …

January 4, 2024

Acquisitions Office Southeast Tennessee

Cushman & Wakefield | Commercial Advisors Arranges Sale of 12-Story Memphis Office Building

by John Nelson January 3, 2024

MEMPHIS, TENN. — Cushman & Wakefield | Commercial Advisors has brokered the sale of a Class B office building located at 2670 Union Ave. in the Midtown submarket of Memphis. According to LoopNet Inc., the 12-story property spans 119,213 square feet and tenants include Pearson Vue, Shelby County Community Service Agency and Lipscomb & Pitts Insurance LLC, which has exterior signage on the building. Landon Williams and Katie Hargett of Cushman & Wakefield | Commercial Advisors represented the sellers, an entity doing business as Union Office Center LLC and private investor Brett Kaye, in the transaction. The buyer, an entity doing business as 2670 Union Avenue Extended Building Owner LLC, purchased the building for an undisclosed price.

January 3, 2024

Leasing Activity New York Northeast Office

MetLife Signs 400,000 SF Office Lease Extension at 200 Park Avenue in Manhattan

by Taylor Williams January 3, 2024

NEW YORK CITY — MetLife has signed a 400,000-square-foot office lease extension at 200 Park Avenue in Manhattan, a deal that keeps the insurance giant in its headquarters and namesake building through 2038. MetLife consolidated its New York City offices at the 58-story building in 2017 by occupying the entire third and sixth floors and parts of the fourth and fifth floors. Patrick Murphy and Peyton Horn of Cushman & Wakefield represented MetLife in the lease negotiations. Megan Sheehan and Sam Brodsky of Tishman Speyer, which owns the building in partnership with Irvine Co., represented the landlord on an internal basis.

January 3, 2024

Leasing Activity Michigan Midwest Office

Blue Cross Blue Shield of Michigan Renews 307,000 SF Office Lease in Downtown Detroit

by Kristin Harlow January 3, 2024

DETROIT — Blue Cross Blue Shield of Michigan has renewed its office lease at 500 River East Tower in downtown Detroit. The health insurance company remains the sole tenant within the 307,000-square-foot building, which has been part of the Blue Cross downtown campus since 2011 and is within close proximity to other Blue Cross and Blue Care Network facilities located on East Lafayette and Jefferson Avenue. According to Crain’s Detroit Business, Friedman Real Estate recently purchased both 500 River East Tower and 600 River East Tower from a New Jersey-based publicly traded utility company. Friedman is marketing 600 River East Tower for lease to prospective corporate users.

January 3, 2024

Acquisitions Midwest Minnesota Office

Colliers Arranges Sale of 31,780 SF Office Building in Plymouth, Minnesota

by Kristin Harlow January 2, 2024

PLYMOUTH, MINN. — Colliers has arranged the sale of a 31,780-square-foot office building in the Minneapolis suburb of Plymouth for an undisclosed price. The property at 13305 12th Ave. North includes 2,500 square feet of warehouse space. Nick Leviton and Laura Moore of Colliers represented the seller, a local partnership. Jason Sell of Cushman & Wakefield represented the undisclosed buyer. The property was occupied until the onset of the COVID-19 pandemic.

January 2, 2024

Acquisitions California Office Top Stories Western

Carolwood Equities Purchases 62-Story Office Tower in Downtown Los Angeles for $153.3M

by John Nelson January 2, 2024

LOS ANGELES — Carolwood Equities LP, a real estate private equity firm based in Beverly Hills, Calif., has purchased Aon Center, a 62-story office tower in downtown Los Angeles. The 1.1 million-square-foot skyscraper is located at 707 Wilshire Blvd. in the city’s Financial District. The $153.3 million sale of Aon Center represents the largest office sale in fourth-quarter 2023 in the Western United States, according to Newmark. The deal is also the largest purchase in downtown Los Angeles last year but sold for 45 percent less than its last purchase price, according to the Los Angeles Business Journal. The media outlet reports that the seller, San Francisco-based Shorenstein Properties, had previously purchased the tower in 2014 for $269 million. Private investors Daniel Abrams and Adam Tischer are part of the new ownership group alongside Carolwood Equities. Tischer, vice president of Colliers’ Los Angeles office, was also part of the brokerage team for the buyer that also included Sean Fulp, vice chair of Colliers. “The ownership group’s acquisition of the iconic Aon Center exemplifies the flow of private capital into Los Angeles, seizing the opportunity created by market dislocation,” says Fulp. “With a new low basis and a well-capitalized owner, Aon Center …

January 2, 2024

Acquisitions Florida Office Southeast

CBRE Facilitates Sale of 120,500 SF Sabal Pavilion Office Building in Tampa

by John Nelson December 22, 2023

TAMPA, FLA. — CBRE has facilitated the sale of Sabal Pavilion, a 120,500-square-foot office property located at 3620 Queen Palm Drive in Tampa. Situated on 11.8 acres, the building is located at the entrance of Sabal Park, a master-planned business development. Amenities at the building include a cafeteria, fitness center and a tenant courtyard with an outdoor basketball court and grilling stations. Dale Peterson, Joe Chick, Courtney Snell and Nick Sharpe of CBRE Capital Markets represented the seller, CTO Realty Growth Inc., in the transaction. A Virginia-based private real estate company acquired the building for an undisclosed price. Ford Motor Credit has fully occupied the property since 2000. Recently, Ford Motor Credit executed a 91,401-square-foot sublease agreement with Cirkul Inc., a reusable water bottle manufacturer.

December 22, 2023

Leasing Activity New York Northeast Office

JLL Negotiates 13,815 SF Office Lease at 860 Broadway in Midtown Manhattan

by Taylor Williams December 22, 2023

NEW YORK CITY — JLL has negotiated a 13,815-square-foot office lease at 860 Broadway in Midtown Manhattan. The six-story building was originally constructed in 1926 and underwent a capital improvement program in 2019. Seth Hecht and Thomas Swartz of JLL represented the landlord, Gordon Property Group, in the lease negotiations. Michael Movshovich and Troy Elias of Cushman & Wakefield represented the tenant, mortgage servicing platform Valon Technologies, which will occupy the entire fourth floor.

December 22, 2023

California Development Life Sciences Office Western

Healthpeak Properties Receives Entitlements for Additional 1.3 MSF Development at Vantage Lab Campus in San Francisco

by Amy Works December 21, 2023

SAN FRANCISCO — Healthpeak Properties has received approval of entitlements for Phases II and III of Vantage, a purpose-built lab development in South San Francisco. The new entitlements enable Healthpeak to deliver an additional 1.3 million square feet of lab space, bringing the campus to approximately 1.7 million square feet upon full build out. The 20-acre campus offers tenants a highly amenitized, world-class campus setting with access to multiple modes of transportation, including direct access to the Rails-to-Trails pathway. The new entitlements represent double the allowable density compared to when Healthpeak originally acquired the land. The long-term nature of the entitlements offers flexibility to deliver the balance of the development in phases to align with market demand. In 2022, Healthpeak started construction on Phase I of the Vantage campus, consisting of 343,000 rentable square feet across two buildings, as well as a 40,000-square-foot amenity building with multiple dining options, conferencing space and a fitness center. Phase I is currently 52 percent leased to Astellas Pharma, which took initial occupancy of its space in December 2023.

December 21, 2023

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