WAKEFIELD, MASS. — Franklin Street Properties Corp. (NYSE AMERICAN: FSP), a Wakefield, Massachusetts-based REIT, reports that it collected 98 percent of rent payments due for April at its office properties despite revenue concerns amid the COVID-19 outbreak. Office users across the country have been forced to lay off employees while others are restricted to work from home, leading many companies to reconsider lease signings and expansions. Franklin owns and operates 35 office properties totaling approximately 9.5 million square feet, primarily located in infill and central business districts in 10 states concentrated in the Southeast and Midwest. The REIT reported a $1.1 million net loss in the first quarter, however, and expressed that it cannot predict rental income in future months. Tenants have requested rent relief requests in the form of deferrals for varying lengths of time, which Franklin may grant in some instances while seeking extended lease terms. The REIT’s stock price closed at $5.05 on May 4, compared with $7.97 at the same time last year.
DALLAS — Keller Williams Realty — North Dallas has signed a 24,971-square-foot office lease at 18333 Preston Road for its new headquarters in the metroplex. Renee Efimoff of SCM Real Estate Services represented Keller Williams in the lease negotiations. Trevor Franke and Andrew Scudder of JLL represented the landlord, Preston North Partners LLC. The move-in is scheduled for late July.
SAN DIEGO — Oberlin Realty LLC has purchased a freestanding flex, office and R&D property located at 10179 Huennekens St. in San Diego’s Sorrento Mesa. Pangea Properties sold the asset for $5.3 million. The buyer plans to occupy the entire two-story, 21,278-square-foot building and utilize the facility for its biotech business. Brant Aberg and Ryan Downing of Cushman & Wakefield San Diego represented the seller, while Chris Duncan of Voit Real Estate Services represented the buyer in the deal.
NEW YORK CITY — SL Green Realty Corp. (NYSE: SLG) has formed a joint venture partnership with the National Pension Service of Korea (NPS) and Hines for the $2.3 billion redevelopment of One Madison Avenue in Manhattan. The 1.4 million-square-foot office project is situated in the borough’s Midtown South neighborhood facing Madison Square Park near the 23rd Street subway station. SL Green, which is self-described as Manhattan’s largest office landlord, has sold a 49.5 percent interest in One Madison Avenue to NPS and Hines, which have combined to invest “no less than $492.2 million” of equity into the redevelopment. SL Green and Hines are co-developing the project, and Kohn Pedersen Fox Associates (KPF) is leading the design. The SL Green-NPS-Hines-KPF team is also working together to develop One Vanderbilt Avenue, an office project currently underway in Manhattan’s East Midtown neighborhood. The existing office building at One Madison Avenue will be demolished down to the ninth floor, and the development group will build 17 glass and steel, column-free floors above. The podium levels at the base of the existing building will have 90,000 square foot floor plates, while the new floors above will feature 36,000-square-foot floor plates. The 10th and 11th …
ATLANTA — Stan Johnson Co. has arranged the $6.7 million sale of a 25,416-square-foot office building in the Kirkwood neighborhood of east Atlanta. The single-tenant building, located at 200 Arizona Ave. NE, serves as mobile and web app development company Big Nerd Ranch’s headquarters. The property was originally built in 1955 and was renovated in 2014. The building sits on two acres, four miles east of downtown Atlanta. A private California-based investor completing a 1031 exchange bought the property from a Dallas-based private investor. Mollie Alteri, Joey Odom, Mike Sladich and Maggie Holmes of Stan Johnson represented the seller in the transaction.
LINCOLNSHIRE, ILL. — Melinta Therapeutics, an antibiotics company, has signed a four-year office lease renewal at Tri State International in Lincolnshire. The company occupies 8,876 square feet on the second floor. Dan Fernitz, Matt Alexander and Milan Gacanovic of Bradford Allen represented ownership in the lease transaction. Henry Lee and Max Zwolan of JLL represented the tenant.
FORT WAYNE, IND. — Waterfield Capital LLC has renewed its 4,030-square-foot office lease at 7221 Engle Road in Fort Wayne. The investment company occupies space at 7221 Engle Road. Brady Gardner and Kevin Ellis of Sturges Property Group represented both the tenant and the landlord, Midwestern Office Park Acquisition LLC, in the lease transaction.
SAN ANTONIO — The San Antonio office market closed the first quarter of 2020 with a 10.2 percent vacancy rate, up 50 basis points on a quarter-over-quarter basis and up 60 basis points on a year-over-year basis, according to a new report from NAI Partners. The firm tracks the performances of commercial real estate markets in Houston, Austin and San Antonio. The vacancy rate for Class A properties in San Antonio was 12 percent, compared to 10.2 percent for Class B assets. However, the majority of the market’s 209,000 square feet of negative net absorption in the first quarter came from Class B buildings. Average asking rents grew by about 4 percent between the first quarters of 2019 and 2020, and there is about 1.5 million square feet of office space under construction in the San Antonio metro area.
FRISCO, TEXAS — Premier Health Solutions, a provider of administration and management services to the healthcare industry, has signed a 17,350-square-foot office lease at Hall Office Park in the northern Dallas suburb of Frisco. Clay Vaughn and Preston Lynn of CBRE represented the tenant in the lease negotiations. Brad Gibson and Kim Butler of Hall Financial represented the landlord on an internal basis. The 162-acre Hall Office Park features more than 2.5 million square feet of office space and amenities such as multiple restaurants and food trucks, a fitness center, bank branch, car care center, wine lounge and event room.
WILLIMANTIC, CONN. — Nonprofit healthcare provider Community Health Resources (CHR) has signed an 11,060-square-foot office lease for an entire single-tenant building in Willimantic, located approximately 25 miles east of Hartford. The property is located at 1310 Main St. in the Tyler Square retail center. CHR offers a range of behavioral healthcare services pertaining to mental illness, addictions, trauma and homelessness. Bob Pagani of Colliers International represented CHR in the lease negotiations. Ron Lyman of Lyman Real Estate represented the landlord, Norwich Realty Inc.