The Las Vegas office market continues to recover and stabilize, capping off 2014 with the 12th consecutive quarter of positive net absorption. Initially slow to recover following the recession, the area’s rebound has recently quickened. The market has an unemployment rate of 7.1 percent, with 2014 being the first year since 2008 to see a rate below 8 percent. Office-related jobs represented 20 percent of the workforce, second only to hospitality, proving the office market is an important part of the area’s growth and vitality. Class A office space along the I-215 Beltway currently shows strong activity. Las Vegas is home to two suburbs that historically were among the fastest-growing communities in the nation: Green Valley in the southeast and Summerlin in the west. Initially built as a means to connect the populations of these communities, the Beltway now extends around the city, connecting to I-15 in the northern valley. Notable recent developments along the Beltway include Krausz Companies’ and WGH Partners’ Gramercy, a mixed-use office, retail and multifamily project in the southwest that added 175,000 square feet of Class A office space in the third quarter of 2014, and The Howard Hughes Corporation’s Downtown Summerlin, a mixed-use project that …
LOS ANGELES – A 143,000-square-foot office park in the Los Angeles submarket of Northridge has sold to a local developer for $6.1 million. The building is located at 8350–8454 Reseda Blvd. It is currently occupied by three tenants in six buildings. The buyer, Harridge Capital Group, was represented by Lynwood Fields of Madison Partners. The seller, Lehr Properties, was represented by David Young and Chad Gahr of NAI Capital.
SANTA CLARA, CALIF. – Admiral Capital Group has sold a 74,276-square-foot office property in Santa Clara for an undisclosed sum. The buyer was not named. The building is located at 4500 Great America Parkway. It was built in 1983. Admiral’s joint venture partner in this transaction was South Bay Development Company.
NEW YORK CITY — New York City-based NorthStar Realty Finance Corp. has closed the acquisition of a €1.1 billion ($1.2 billion U.S.) pan-European office portfolio that the company entered into an agreement to purchase in 2014. The approximately 186,000-square-meter (2 million-square-foot) portfolio comprises 11 Class A office properties located in seven of Europe’s top markets: London, UK; Paris, France; Hamburg, Germany; Milan, Italy; Brussels, Belgium; Amsterdam and Rotterdam, Netherlands; and Gothenburg, Sweden. NorthStar Realty financed the acquisition with €530 million of the seven year senior mortgages, denominated primarily in the local currencies of the respective properties, with a current weighted average interest rate of approximately 1.8 percent. NorthStar Realty Finance Corp. is a diversified commercial real estate company that is organized as a REIT. NorthStar Realty is managed by an affiliate of NorthStar Asset Management Group Inc. (NYSE: NSAM), a global asset management firm.
SAN BERNARDINO, CALIF. — A joint venture between Hines and funds managed by Oaktree Capital Management L.P. have purchased Tri-City Corporate Centre, a 17-building, mixed-use office complex in San Bernardino, for an undisclosed sum. The property is located near the intersection of the I-10 and I-215 freeways. Tri-City Corporate Centre contains more than one million square feet of space on 153 acres. The master-planned business park offers a range of building styles, including mid-rise, low-rise, flex and eight Class A office towers. This was the largest office sale by square footage in recorded history for the Inland Empire, according to CBRE, which represented the sellers. Construction began on the center in 1986 and continued through 2008. It is currently 61 percent occupied. Notable tenants include Northrop Grumman, Art Institute of California, Wells Fargo, CalPERS, Health Net, Fidelity Title, Parsons Brinckerhoff, TASC and Chicago Title. Tri-City contains notable buildings like One Vanderbilt, Vanderbilt Plaza, Brier Corporate Center, One, Two and Three Parkside, Lakeside Tower, North River Place, One and Two Carnegie Plaza, Northcourt Plaza, and Carnegie Business Center I and II. The campus is entitled to add more than 300,000 square feet of development on four parcels of land. It also …
GLENDALE, ARIZ. – Brookwood Commerce Centre, a 209,182-square-foot office building in Glendale, has sold to United Realty MTA for $9.9 million. The mid-rise center is located at 4425 W. Olive Ave. It was built in 1974. Brookwood was 79 percent occupied at the time of sale. The seller, 4425 West Olive Holdings, was represented by DTZ’s Eric Wichterman and Mike Coover.
SCHAUMBURG, ILL. — Summit Design + Build LLC will complete a 20,588-square-foot office build-out for Sparton Corp. at Woodfield Corporate Center in Schaumburg. The property is located at 425 N. Martingale Road. The firm, which is currently located in the same building, will be expanding to the entire 10th floor. Construction plans include the demolition of the existing space and build-out of a new reception area, multiple conference rooms, private offices, executive suite, boardroom and a new large training area with state-of-the-art technology. Lincoln Property Co. is the property manager of Woodfield Corporate Center. EWP Architects will provide architectural services. Completion is scheduled for this spring. Sparton Corp. is a provider of electromechanical devices with capabilities that include concept development, industrial design, design and manufacturing engineering, production, distribution, field service and refurbishment. The primary markets served are medical and biotechnology, military and aerospace, and industrial and commercial.
BELLAIRE, TEXAS — California-based KBS Strategic Opportunity REIT has signed an 11,809-square-foot lease at 6575 W. Loop S. in Bellaire, which is three miles west of Houston’s central business district. The new tenant is Regus, a provider of flexible workspace operating in more than 2,000 locations worldwide. The company is a provider of executive suites, office space, virtual offices and conference rooms. The leased space is located at an office complex known as West Loop I and II. The multitenant, 5.6-acre, 313,873-square-foot property includes two buildings and an eight-story parking garage. West Loop I is an eight-story building that includes 169,536 rentable square feet, while West Loop II offers 144,337 rentable square feet in seven stories. The property is located near several residential communities, including Bellaire and West University.
BRIDGEWATER, N.J. — American Real Estate Partners has acquired CenterPointe at Bridgewater, a four-building office park located at 1130, 1140, 1150 and 1160 Route 22 East in Bridgewater. The 331,846-square-foot asset sold for $24.7 million. Situated on 20 acres, the property features flexible and highly efficient office space, fitness and food amenities, a conference facility and on-site management. American Real Estate Partners plans to invest $2.7 million in capital improvements to the office campus, including improved finishes and upgrades to elevators, lobby and common areas. At the time of sale, the campus was 54 percent leased, with two buildings 100 percent leased. The property is being acquired by a joint venture sponsored by a discretionary fund managed by American Real Estate Partners and is the fund’s fourth investment. The name of the seller was not disclosed.
PHOENIX – Arizona DCS Office in Phoenix has sold to TH Stratman for $3.1 million. The space is located at 3310 and 3320 N. 19th Ave. The two-story office building is fully leased to the Arizona Department of Child Safety (DCS) through the end of 2021. The space was built in 1983. It was remodeled in 2011 and 2014. The seller, Fenway Properties, was represented by DTZ’s Eric Wichterman and Mike Coover.