NEW YORK CITY — Internet service provider Pilot Fiber NY LLC has signed an office lease expansion at One World Trade Center in Lower Manhattan. The tenant now occupies 12,456 square feet on the 46th floor of the 3.1 million-square-foot skyscraper. Michael Thomas and Taylor Bell of Colliers represented Pilot Fiber in the lease negotiations. David Falk, Peter Shimkin, Hal Stein, Jason Greenstein and Nathan Kropp of Newmark, along with internal agents Eric Engelhardt and Karen Rose represented the landlord, a partnership between The Durst Organization and The Port Authority of New York & New Jersey.
MILWAUKEE — CBRE has brokered the $28.7 million sale of 100 East, a 435,000-square-foot office building in Milwaukee. An entity doing business as 100 East PropCo LLC purchased the property from Michael Polsky, the court-appointed receiver for Hertz Milwaukee 100 East Wisconsin LLC. Patrick Gallagher, Matson Holbrook, Bill Bonifas and Matt Cariello of CBRE represented the seller. The new ownership intends to convert 100 East into a multifamily property. The 35-story building is located at 100 E. Wisconsin Ave. and was originally built in 1989. It was 46.5 percent occupied at the time it was marketed for sale.
— By John Wadsworth and Aaron Phillip, Colliers — The Orange County medical office building (MOB) market continues to show resilience post-pandemic despite headwinds of the new interest rate environment. The overall Orange County MOB market consists of 10 million square feet with a current vacancy of 8.5 percent, down 100 basis points from the end of 2022. The average rental rate is $3.48 per square foot, per month, full-service growth, with an increase of 9.3 percent from mid-year 2022. The lack of significant MOB construction completions, coupled with much of the existing vacancy found in older, functionally obsolete buildings, has kept supply largely in line with demand. The velocity of MOB leasing activity has softened compared to pre-pandemic transaction volume, with healthcare providers still digging out of the financial “COVID hole.” Among other market pressures, labor costs and retention across healthcare employment significantly contribute to continued narrow margins on provider balance sheets. From larger health systems to smaller independent practices, all have been impacted, slowing the pace of expansion projects and mandating shorter, more flexible transactions until more permanent real estate solutions can be implemented. Despite the market challenges posed by the pandemic, MOB absorption has remained positive countywide, …
LEANDER, TEXAS — Baltimore-based St. John Properties will develop a 120,000-square-foot office project in the northern Austin suburb of Leander. The four-story building will be situated within the 116-acre Northline mixed-use development and will include 15,500 square feet of retail and restaurant space. Beck Design is the project architect, and Kimley-Horn is the civil engineer. Delivery is slated for the first half of 2025.
MISSOURI CITY, TEXAS — Colliers has arranged the sale of a 12.5-acre office development site in Missouri City, a southwestern suburb of Houston. The site has over 1,000 feet of frontage on Knights Court Road and is across the street from Elkins High School. Chris Hutcheson, Harrison Kane and James Kadlick of Colliers represented the seller in the transaction. The size and construction schedule of the office condominium park that the undisclosed buyer intends to build on the site have not yet been determined.
FORT WORTH, TEXAS — Pittsburgh-based PNC Bank has signed a roughly 15,000-square-foot office lease at The Crescent Fort Worth, a mixed-use development in the city’s Cultural District. Members of PNC’s corporate, commercial and private bank teams will relocate to the new space, which features traditional offices and conference rooms with modern high-tech workspaces, early next year. No third-party brokers were involved in the lease negotiations. Crescent Real Estate owns the property.
PRINCETON, N.J. — Cushman & Wakefield has negotiated a 53,000-square-foot office lease at Princeton Point, a two-building office complex located within the university’s 2,000-acre business and research campus. The property offers an onsite café/restaurant, conference center and a courtyard with outdoor private seating. Kevin Carton and Todd Elfand of Cushman & Wakefield represented the landlord, Nuveen Real Estate, in the lease negotiations. Shawn Straka, also with Cushman & Wakefield, represented the tenant, pharmaceutical company Dr. Reddy’s Laboratories.
NEW YORK CITY — New York Cares, a nonprofit organization that coordinates volunteer opportunities throughout the city, has signed an 8,280-square-foot office lease at 39 Broadway in Manhattan’s Financial District. The 447,400-square-foot building is also home to tenants such as Waterfront Commission of New York Harbor and Food Bank for New York City. Carri Lyon and Jenna Catalon of Cushman & Wakefield represented the tenant in the lease negotiations. Brian Siegel of The Lawrence Group represented the landlord, Cammeby’s Management Co. LLC.
HENDERSON, NEV. — A joint venture between Los Angeles-based Partners Capital Inc. and Las Vegas-based CNR Retail has purchased Green Valley Corporate Center South, an office complex located at 2500 and 2550 Paseo Verde Parkway in Henderson. JMA Ventures and Blue Vista Capital Management sold the asset for $17.2 million, or $188 per square foot. Tyler Ecklund, Marc Magliarditi, Travis Landes, Michael Hsu, Brad Peterson, Darren Lemmon and Justin Witt of CBRE represented the sellers, while Chris Clifford, Steve Neiger and Brett Rather of Colliers represented the buyers in the transaction. Built in 2000 and 2002, the two-building Green Valley Corporate Center South offers 91,742 square feet of Class A office space and is part of an eight-building office portfolio within the master-planned Green Valley corridor. At the time of sale, Green Valley Corporate Center South was 81.6 percent occupied. Current tenants include GK Properties Real Estate & Management, Thrive Aviation and Village Capital & Investment. The buyer plans to convert the existing single-story office buildings into a lifestyle center with a focus on crafted dining, retail, design, entertainment, health and wellness uses.
CHICAGO — Flack Global Metals (FGM) has signed a 6,000-square-foot office lease at 345 N. Morgan in Chicago’s Fulton Market. Owned and developed by Sterling Bay, the boutique office building is now more than 90 percent leased. FGM will be relocating its current office from 20 N. Clark St. and nearly doubling its square footage. The 11-story building is located just south of Metra’s Union Pacific West line and includes retail space on the ground floor. Sterling Bay began construction of the 200,000-square-foot property in August 2021, and completed it in September 2022. Amenities include private outdoor terraces, a top-floor bar and lounge, roof deck, fitness and wellness center, and conference rooms. Other tenants include HAVI Group, Wellington Management, Allsteel, Humanscale and JSI. Liz McCleary of CBRE represented FGM, while Austin Lusson and Daniella Hemsley represented Sterling Bay on an internal basis.