SAN ANTONIO — Dornin Investment Group has sold the Parkway Plaza office park in San Antonio’s North Central submarket. A private investor based in Texas purchased the single-story buildings for an undisclosed amount. Situated on 13.7 acres, the 189,390-square-foot property was 91 percent leased at the time of sale. Todd Mills of Cushman & Wakefield represented Dornin Investment Group in the sale.
DALLAS — Newmark Knight Frank (NKF) has secured a long-term lease renewal at Fountain Place, a 60-story office building in Dallas that recently underwent a $70 million redevelopment. The tenant is Commerce Street Holdings LLC, the holding company for Commerce Street Capital LLC. The company will retain its office on the 27th floor of Fountain Place, which is located at 1445 Ross Ave. in the city’s Arts District. Jim Cooksey, Paxton Cooksey, Garrison Efird and Louis Pascuzzi of NKF represented Commerce Street Holdings in the lease transaction. Atlanta-based Goddard Investment Group owns and operates the office tower, which includes four new restaurants, a dry cleaner, Wells Fargo bank branch, onsite training center, car wash, sundry shop, tenant lounge and an 8,000-square-foot fitness center.
The office market in metropolitan Washington, D.C., is currently differentiated between a vigorous investment sales market and anemic leasing fundamentals. According to data from CoStar Group and Cushman & Wakefield, office investment sales have averaged $8.4 billion annually from 2014 to 2018 versus $5.5 billion annually from 2008 to 2013. Investment sales in the District have been dominated by Class A and trophy assets with little leasing risk, while demand is buoyed by foreign capital sources. In Northern Virginia, sales have trended toward core-plus and value-add investments led by domestic buyers seeking additional yield. Investors are more comfortable with leasing risk in Northern Virginia due to its robust job growth, a trend likely to continue given the jurisdiction’s comparative advantages in cloud computing, cybersecurity and internet infrastructure. Amazon’s selection of Crystal City for HQ2 and Amazon Web Services’ large block leasing in the Dulles Toll Road corridor are emblematic of these larger regional trends. However, there are signs that investment demand may have peaked for the current cycle. This year’s sales volume is the weakest in several years despite an influx of closings in September to beat Washington, D.C.’s increase to the transfer and recordation taxes from 2.9 percent to …
PLANO, TEXAS — Cawley Partners, an office real estate investment and development firm based in Dallas, has purchased 5501 Headquarters, a three-story, 169,179-square-foot office building in Plano’s Legacy submarket. Situated near the Dallas North Tollway, the office serves as the corporate headquarters of Rent-A-Center, a rent-to-own furniture and electronics retailer. Rent-A-Center sold the asset to Cawley Partners for an undisclosed price and will remain in roughly 60 percent of the building on the east side. About 70,000 square feet of office space is coming available at 5501 Headquarters in April. Cawley Partners plans to modernize the 2007-era property for multiple tenants. Updates are planned for the lobby, restrooms, fitness center and conference rooms, and Cawley Partners plans to add an upscale convenience market and tenant lounge. Additionally the land off Headquarters Drive has future development opportunities, according to Cawley Partners.
AUSTIN, TEXAS — Barings and B&Z Development LLC plan to break ground on 701 Rio in west downtown Austin next Wednesday, Jan. 8. Situated in the Original Austin Neighborhood at Rio Grande and 7th streets, 701 Rio will span 120,983 square feet of office space across five floors. JLL is leasing the property on behalf of the ownership group. The design team includes architect BGK and Colorado-based general contractor Hensel Phelps. Barings, a subsidiary of MassMutual, is a $335 billion global asset management firm.
PHILADELPHIA — Norvin Healthcare has acquired 3 Crescent Drive, a 96,000-square-foot medical building in Philadelphia. The property is 100 percent leased to Thomas Jefferson University Hospitals Inc. and stands at the gateway of the Philadelphia Navy Yard. The 1,200-acre Navy Yard houses more than 165 businesses, including the South Philadelphia Sports Complex. Liberty Property Trust was the seller.
CHICAGO — Chicago’s Willis Tower has become the largest building in the country to earn the LEED Platinum designation, the highest ranking possible given by the U.S. Green Building Council. The property owner, EQ Office, made energy, sustainability and comfort improvements to achieve the designation. EQ worked with Rivion, a Wisconsin-based energy consulting firm. Some of the enhancements include revamping the heating and cooling system, replacing electric hot-water generators with natural gas hot-water boilers, upgrading the building’s lighting and installing low-flow faucets and toilets. The 110-story Willis Tower is undergoing a $500 million renovation. The property, largest in the United States by square footage, earned LEED Gold certification in 2018.
GILBERT, ARIZ. — CBRE has arranged the sale of a flex industrial and office building located at 1145 W. Gary Road in Gilbert. Martinsburg, Pa.-based Curry Supply Co. acquired the property from Edmonton, Alberta-based Silent-Aire. Curry Supply, a manufacturer and dealer of commercial service vehicles, will occupy the building, which serve as its fifth U.S. location and first Arizona location. Situated on 3.16 acres, the two-story, 55,392-square-foot building features 10,000 square feet of office space that includes offices, conference rooms, open bullpen areas, break rooms, restrooms and a dedicated server room. The remaining industrial space features an evaporate-cooled warehouse with LED lighting throughout, 24-foot clear ceiling heights, five grade-level doors, two truck wells and existing five-ton and one-ton cranes. Additionally, the property offers 72 parking spaces. Rusty Kennedy, Pat Feeney, Dan Calihan and James Cohn of CBRE in Phoenix represented the seller, a global manufacturer of HVAC equipment and modular data centers, in the transaction.
PLANO, TEXAS — Paragon Healthcare, a medical firm specializing in infusible and injectable pharmacy services, has leased 67,000 square feet of office space at The Apex Building in Plano. The company will move more than 250 employees from its current headquarters in Dallas to its new offices at 3033 W. President George Bush Highway. Paragon plans to create an additional 75 positions at the office by 2021. Brad Struck, Darren Woodson and Roy Reis of esrp represented Paragon in the lease negotiations, and Susan Arledge of esrp arranged incentives with the City of Plano. Duane Henley of Transwestern represented the landlord, Dallas-based Champion Partners.
CAMBRIDGE, MASS. — Newmark Knight Frank has brokered the sale of The ARC, a 225,305-square-foot life sciences building in Cambridge, a northern suburb of Boston. The property is 100 percent leased to five biopharmaceutical and biotechnology companies complemented by a burger restaurant. Amenities include a fitness center, indoor solarium and outdoor green space. An NKF team including Robert Griffin, Edward Mahar and Matthew Pullen represented the seller, a partnership of The Davis Cos. and Invesco. The team also procured the buyer, Healthpeak Properties Inc.