WESTLAKE VILLAGE, CALIF. — Majestic Asset Management has completed the sale of 2829 Townsgate, a multi-tenant office building in Westlake Village. California Commercial Investment Cos. acquired the property for $27 million. Located at 2829 Townsgate Road, the property features 88,334 square feet of office space, occupied by 10 tenants. Kevin Shannon, Sean Fulp, Ryan Plummer and Mark Schuessler of Newmark represented the seller in the deal.
DALLAS — Locally based brokerage firm Altschuler & Co. (ALT + Co.) has negotiated a 101,080-square-foot office lease at The Stack, a newly constructed office building in the Deep Ellum area of Dallas. ALT + Co. represented the landlord, a partnership between Westdale Real Estate Investment and Management, Ivanhoé Cambridge and Hines, in the lease negotiations. Robert Blount and Andy Leatherman of JLL represented the tenant, marketing and advertising agency TRG. With this transaction, which follows the signing of life insurance software provider Bestow to a 42,000-square-foot deal, The Stack is now fully leased.
AUSTIN, TEXAS — Tricentis, a provider of automated software testing services, has signed a 42,019-square-foot office lease at Uplands Corporate Center, a recently expanded office campus in North Austin. Russell Young of JLL represented the tenant, which plans to hire about 100 new employees, in the lease negotiations. Kevin Granger and Matt Frizzell of Cushman & Wakefield represented the landlord, Drawbridge Realty.
MANAHAWKIN, N.J. — Marcus & Millichap Capital Corp. (MMCC) has arranged a $6 million loan for the refinancing of a 24,900-square-foot office building in the Northern New Jersey community of Manahawkin. The two-building property was constructed in 2008. Joseph Belgiovine off MMCC originated the 12-year, nonrecourse loan, which carried an interest rate of roughly 3.6 percent, a 70 percent loan-to-value ratio and a 30-year amortization schedule. The borrower was not disclosed.
MCLEAN, VA. — Avison Young has arranged a $20 million loan to refinance a 47,000-square-foot medical office building in downtown McLean. Jon Goldstein, Mike Yavinsky and Wes Boatwright of Avison Young arranged the loan through an unnamed local bank on behalf of the borrower, a partnership between Stewart Investment Partners and Chestnut Funds. Built in 1985, the three-story property was converted from a general office building into a medical office building in 2021. Improvements included outfitting the atrium lobby, corridors, elevators and restrooms, as well as adding energy-efficient lighting and modernizing the parking garage. Located at 1420 Beverly Road, the property offers access to Interstates 495 and 66 and Dulles Toll Road. The property is also 11.2 miles from Washington, D.C.
HOUSTON — SPB Hospitality, a national franchisor and operator of steakhouse and brewery concepts, has signed a 42,290-square-foot office lease at The Offices at Greenhouse, a 203,284-square-foot building in Houston’s Energy Corridor. California-based KBS owns the property, which was built in 2014 and offers a four-story parking structure, outdoor amenity spaces and a conference center. Brad Fricks of Stream Realty Partners represented KBS in the lease negotiations. Jon Silberman and Pierce Beyer of NAI Partners represented SPB Hospitality.
SAN ANTONIO — NAI Partners has brokered the sale of Commons at the Dominion, a five-building, 31,112-square-foot office complex located near The Dominion master-planned community in San Antonio. According to commercialcafé.com, the property was built on 3.7 acres in 2007. Josh Murphy and Clare Flesher of NAI Partners represented the seller, Dominion Drive Partners, in the transaction. The buyer and sales price were not disclosed.
NORWALK, CONN. — A partnership between New York City-based Clarion Partners and Boston-based Marcus Partners is nearing completion of the renovation of Merritt 7, a 1.4 million-square-foot office campus in the southern Connecticut city of Norwalk. Following completion of the capital improvement program, the six-building campus will feature energy-efficient utility systems and upgraded amenities. Merritt 7 now houses two food halls with indoor and outdoor seating, 10,000 square feet of conference space, 60,000 square feet of outdoor amenity space, a fitness center, hair salon and car detailing service. The partnership has tapped JLL to provide leasing services for the upgraded building. Gensler served as the architect of the renovation program.
NEW YORK CITY — Avison Young has negotiated the $10.5 million sale of a 15,540-square-foot office and retail building located at 206 Spring St. in Manhattan’s So District. The five-story building houses tenants such as Korean restaurant The Woo and cosmetic dentistry firm SoHo Smile. James Nelson, Brandon Polakoff, Eric Karmitz and Bradley Rothschild of Avison Young represented the seller, locally based investment firm Corigin, in the transaction. The team also procured the undisclosed buyer.
By Bob Caudill, Executive Vice President, Colliers We continue to see a flight by tenants into low-rise office properties, typically four stories or less, and out of high rises. This trend began pre-pandemic, but COVID has undoubtedly accelerated its movement. Asking rates in the market have flattened, while concessions like free rent, beneficial occupancy and improvement allowances have increased. The surge in construction costs continues, putting stress on the economics of lease deals. In addition, construction material delivery delays have impacted the completion of tenant improvements. We will continue to see challenging times for office owners in the short-term as tenants are unsure how much space they need going forward. More tenants will also struggle to pay rent on time. In the long-term, although some industries have learned that they can remain successful with most of their employees working remotely, others are experiencing negative impacts on creativity and collaboration. As a result, their businesses have suffered financially, and they will require their employees to return to the office. Activity and Impact The Irvine Company’s Spectrum Terrace has set a new standard in design and quality for low-rise, Class A office properties. Tenants in this project are creating a workplace environment that employees will want …
