PORTLAND, ORE. — Ready Capital has provided a $13.8 million loan for the acquisition, repositioning and lease-up of a flex property located in Portland’s Central East Side submarket. The undisclosed sponsor plans to use loan proceeds to convert the current industrial buildings into modern creative office spaces. The transformation will include connecting the building via a modernized tenant entry and common area, complemented by a new elevator system. Additionally, the repositioning will include rooftop access, improved common areas, updated exteriors and additional parking. Upon completion, the asset will offer approximately 57,000 square feet of office space. Ready Capital’s National Bridge Originations Team closed the non-recourse, interest-only, floating-rate loan. The financing features a 36-month term with two extension options and flexible prepayment, while including a facility to provide future funding for capital expenditures, tenant leasing costs and an interest reserve.
Our Twin Cities office market remains strong as the population of millennials and empty nesters continues to migrate to first- and second-ring areas, bringing revitalization and new investment into the city’s commerce and infrastructure. With vacancies remaining exceptionally low and fewer developments on the horizon, rents have shown consistent growth. We are seeing fewer new buildings under construction for single-tenant users. Most are geared toward multi-tenant, mixed-use concepts. Newly renovated buildings with many amenities are performing well in attracting and keeping tenants. With the metro’s unemployment right around 3 percent and employers with jobs to fill, tenants have the leverage. Offering modern and high-tech communal spaces with multiple amenities is key. Tenants and buyers are leveraging this trend, therefore spaces with the allure of contemporary and updated finishes are highly desired. It is imperative that landlords and owners renovate and update their buildings in order to stay relevant in today’s market. Many tenants are simply moving from one space to another nearby because it has been updated and improved upon. That is one of the bigger challenges — improvements that keep the space relevant. Space configurations Employers often offset higher rent costs by embracing space efficiency and flexible workspace strategies …
ATLANTA — Parkway Property Investments LLC has acquired 100 Edgewood, a former United Way building within an Opportunity Zone in downtown Atlanta, for $17.7 million. The company is planning a $45 million renovation for the 18-story, 306,000-square-foot office building, which is adjacent to Georgia State University. United Way employees have moved to a location on Courtland Street. Parkway Property raised $25 million in three hours for the acquisition and renovation through CrowdStreet Inc., an online marketplace for direct equity investment in commercial real estate. Details of the renovation were not disclosed.
ASHBURN, VA. — Finmarc Management Inc. has purchased an office building and adjacent industrial facility in Ashburn for $26.1 million. The 190,000 square feet of research and development space serves as Telos Corp.’s headquarters. Telos provides information technology solutions and services to the military, intelligence and civilian agencies of the federal government and NATO allies. The property consists of a three-story, 110,000-square-foot office building and a single-story, 80,000-square-foot industrial structure that are located on a 26-acre site. Situated at the intersection of Ashburn Road and Leesburg Pike, the warehouse/research and development component of the property is equipped with 18- to 20-foot ceiling heights, four dock-high and two drive-in loading doors, as well as a surface parking lot that surrounds both buildings. The buildings are located eight miles from Dulles International Airport and 30 miles from downtown Washington, D.C. Andrew Weir, Bruce Strasburg and James Meisel of JLL represented the undisclosed seller in the transaction.
BETHLEHEM, PA. — Coworking company Venture X has signed a 13,000-square-foot office lease for in Bethlehem, located about 50 miles north of Philadelphia. The space is situated within the 127,832-square-foot Gateway at Greenway Park mixed-use development, which includes space leased to Lehigh University and St. Luke’s University Health Network. The Venture X office is expected to be operational by January 2020. Jody King of CBRE represented the landlord, Dennis Benner of Ion Development, in the lease negotiation. King also represented Venture X.
HARTFORD, CONN. — O,R&L Commercial has negotiated a 7,114-square-foot medical office lease in Hartford. First Choice Health Centers Inc. will move into the entire second floor of 478 Burnside Avenue. The non-profit healthcare provider will offer a range of medical services including primary, pediatric and dental care. Thomas Wilks of O,R&L represented the landlord, Shafa Building LLC, in the lease negotiations. Wilks also procured the tenant.
DEARBORN, MICH. — Ford Motor Co. has unveiled plans to transform its Research & Engineering Center in Dearborn into a high-tech campus for its thousands of designers, engineers and product development workers. The heart of the project will be a new central campus building, which will sit on the site of Ford’s 66-year-old product development center. Construction of the new building is slated for completion in 2025. The new facility will help Ford speed product and technology innovation and attract world-class talent, according to a news release. Ultimately, the master plan envisions a campus of interconnected buildings that could one day house more than 20,000 employees. The new master plan is the result of a two-year research and planning process led by architect Snohetta. Plans call for an increase in public spaces and shared pathways, as well as coffee shops and restaurants.
KANSAS CITY, MO. — Copaken Brooks and Square Deal Investments have acquired the former Kansas City Public Library and Board of Education Building for an undisclosed price. The building is located at 1211 McGee St. in downtown Kansas City. The 11-story, 261,800-square-foot property has been vacant since the Kansas City Public Schools district moved to its current location at 2901 Troost in 2016. Aaron Mesmer and Matt Levi of Block Real Estate Services represented the seller, the school district.
NEW YORK CITY — Knotel, a New York-based flexible workspace provider, has signed a 27,000-square-foot lease at 240 West 35th Street, a 165,000-square-foot class A office building in Manhattan. The space will comprise the entire 7th, 8th and 18th floors of the property. Essential Design + Build will renovate the space with both open offices and closed meeting rooms. Knotel plans to move into the space in fall 2019. Colin Godwin and John Cinosky of Atco Brokerage Services represented the landlord, ATCO Properties & Management internally in the lease negotiations. Douglas Regal, Jamie Katcher and Sebastian Infante of Cushman & Wakefield represented Knotel.
CHICAGO — Amazon has unveiled plans to expand its Chicago tech hub and create an additional 400 jobs in fields including cloud computing, advertising and business development. To accommodate the job creation, Amazon will expand its office in downtown Chicago by more than 70,000 square feet. This will double the company’s tech workforce within the city. Amazon’s Chicago tech hub is one of the company’s 18 North American tech hubs. Amazon employees in Chicago currently build and support products and services for Amazon Web Services, Amazon Advertising and the company’s transportation and operations units. Together with its customer fulfillment and retail facilities, Amazon has created more than 11,000 full-time jobs in Illinois and invested over $4.4 billion in the state since 2010.