Office

Chicago’s Suburban Commercial Real Estate Sector Proves Its Mettle Once Again

by Danielle Everson February 4, 2015

Here’s the Chicago commercial real estate market’s big secret: the suburbs never went away. While it’s true that office vacancy rates hit the high 20s in 2008, the truth is that suburban absorption never faltered. In early 2014, Savills Studley reviewed all office leasing transactions from 2010 to 2013, a recessionary period for the sector. The analysis revealed that of the nearly 7.4 million square feet of deals tracked, nearly three-quarters of the moves (5 million square feet) involved tenants moving from one suburb to another. Compare that trend to the relocations from the suburbs to the city, which totaled approximately 1.8 million square feet during the same period. The exodus of companies like Hillshire Brands and Motorola Mobility from the suburbs made it seem like the city was the only place to be for high-growth firms. The analysis also showed that firms moving from out of town to the area went to the suburbs rather than the city by a factor of more than 2 to 1: 385,000 square feet versus 160,000 square feet. So, it’s no surprise that the suburban Chicago office market ended 2014 with the lowest vacancy rate since 2008. The 22.6 percent vacancy rate in …

February 4, 2015

Office Texas

Lee & Associates Arranges Office Leases in Metro Dallas

by Haisten Willis February 4, 2015

GRAND PRAIRIE, TEXAS — Lee & Associates has arranged the lease of five industrial properties in OakRidge Business Center in Grand Prairie. Mark Graybill of Lee & Associates’ Dallas/Fort Worth office represented the landlord, IndCor Properties, on the leases. The arrangements include renewal and expansion of Lennox Industries’ lease of 9,674 square feet at 1201 WN Carrier Parkway. New leases include Elegant Accents’ 6,000-square-foot flex space located at 1201 WN Carrier Parkway; Easy Sale’s lease of 5,000 square feet; and Veteran Garage Door’s lease of 2,500 square feet located at 1209 WN Carrier Parkway. NAWF will expand to 14,400 square feet at 1213 WN Carrier Parkway. OakRidge Business Center has recently undergone remodeling with new construction and make-ready suites.

February 4, 2015

Georgia Office Southeast

Mercedes-Benz USA Announces Details of New Corporate HQ in Atlanta

by John Nelson February 4, 2015

ATLANTA — Mercedes-Benz USA (MBUSA) has announced the permanent and interim locations for its new corporate headquarters in Atlanta. MBUSA, which is currently headquartered in Montvale, N.J., will construct a new headquarters facility on a 12-acre greenfield site located at the corner of Abernathy and Barfield roads in Sandy Springs, expected to be completed in early 2018. As part of the relocation, the automaker plans to hire hundreds of new employees from the Atlanta area at its new headquarters, which is set near the intersection of Georgia 400 and I-285. Beginning July 2015, the company will move into temporary office space at Sterling Pointe II, a 186,000-square-foot, Class A office building at the Perimeter Center complex in the neighboring city of Dunwoody.

February 4, 2015

Loans New Jersey Northeast Office Retail

HFF Arranges $221.8M Loan for 30-Property Retail, Office Portfolio

by Amy Works February 4, 2015

FLORHAM PARK, N.J. — Florham-based HFF, on behalf of Paramount Realty Services, has arranged $221.8 million in financing for an approximately 2 million-square-foot portfolio consisting of 30 retail, office and medical office properties in Pennsylvania and Maryland. The portfolio was 96 percent occupied at the time of closing. Jon Mikula, Jim Cadranell, Samuel Seiden and Michael Cerulo of HFF represented the borrower in the transaction. The financing was closed with a portfolio lender. Additional details of the deal were not released.

February 4, 2015

Connecticut Industrial Northeast Office

Brady Corp. Sells 85,000 SF Industrial Facility for $4M in Connecticut

by Amy Works February 4, 2015

BRANFORD, CONN. — Brady Corp. has completed the disposition of an 85,000-square-foot light industrial/flex facility in Branford. Situated on 11.2 acres at 20 Thompson Road, the facility sold for $4 million. Brady Corp. plans to lease back 20,000 square feet of the building’s Class B office space. The Geenty Group and Cresa represented the seller, while The Geenty Group represented the undisclosed buyer in the transaction.

February 4, 2015

Northeast Office Pennsylvania

KarMar Realty Group Brokers $1.45M Sale of Pennsylvania Office Building

by Amy Works February 4, 2015

GLEN MILLS, PA. — KarMar Realty Group has brokered the sale of an office building located at 1788 Wilmington Pike in Glen Mills. GHS Summit LLC purchased the two-story, 14,500-square-foot office building from Crawford Leasing LLC for $1.45 million. Justin Soss and Donald Grimes of KarMar Realty represented the seller in the transaction.

February 4, 2015

California Office Western

Westcore Properties Buys Sunnyvale Office Building, Data Center

by Nellie Day February 4, 2015

SUNNYVALE, CALIF. — Westcore Properties has acquired a 165,497-square-foot property in Sunnyvale for $52.7 million. The property is located at 1390 and 1400 Kifer Road. The acquisition includes a three-story office building and a single-story data center. The vacant office building will undergo a major renovation, including a new outdoor tenant area, refreshed landscaping, and new finishes to the lobby and interior. The data center is occupied by CenturyLink. The property is less than a mile from CalTrain. The seller, WTA Development, was represented by DTZ’s Steve Horton and Kelly Yoder, and by CBRE’s Joe Moriarty and Brad Zampa. DTZ will also handle the leasing assignment.

February 4, 2015

Loans Office Texas

HFF Arranges $50M in Financing for Office Building in Houston

by Haisten Willis February 3, 2015

HOUSTON — HFF has arranged $50 million in financing for 3040 Post Oak Blvd., a 427,486-square-foot, Class A office building in the Lakes on Post Oak complex adjacent to the Galleria in Houston. HFF worked on behalf of the borrower, MetLife Real Estate Investors, to secure the 10-year, fixed-rate loan through Northwestern Mutual Life Insurance Co. HFF previously marketed and closed the sale of this property, which was purchased by the borrower. 3040 Post Oak Blvd. is located at the intersection of Post Oak Boulevard and Hidalgo in Houston’s Galleria/Uptown District. The property is 80 percent leased to 25 tenants including Bechtel Corp., Carriage Services and Wealth Design Group. Wally Reid Tyler Ford and Matthew Putterman led the HFF debt placement team.

February 3, 2015

Illinois Loans Midwest Office

Mesa West Originates $220M Loan to Refinance Chicago’s 1KFulton Office Building

by Danielle Everson February 3, 2015

CHICAGO — Mesa West Capital has provided Sterling Bay $220 million to refinance 1KFulton, a 10-story, 535,000-square-foot office building in Chicago’s West Loop. The property will serve as Google’s new regional headquarters. Other tenants include bicycle gear maker SRAM International Corp. and Venture Capital firm Sandbox Industries. The financing included $35 million of mezzanine debt, which was placed at closing with Morgan Stanley Real Estate Investing. The building features efficient floor plates up to 71,000 square feet with 11-foot floor-to-ceiling glass and 12-foot slab-to-slab height. Additionally, select property amenities include a subterranean parking garage, fitness center and unmatched rooftop common areas as well as easy access to the newly completed Morgan & Lake CTA stop located one block south of the property. Local development firm Sterling Bay acquired the former Fulton Market Cold Storage warehouse in 2012. The nearly 100-year-old vacant 10-story structure is now a state-of-the-art LEED Gold certified office and retail building. Michael Kavanau, Tim Joyce and Christopher Knight of HFF arranged financing. The building was 88 percent leased at the time of financing.

February 3, 2015

Office Texas

ProSource Texas Leases 22,781 SF Office Space in Metro Dallas

by Haisten Willis February 3, 2015

COPPELL, Texas – ProSource Texas has leased a 22,781-square-foot office space in the Sandy Lake Business Center for its fifth location in north Texas, signing a long-term lease with a purchase option to underwrite its stay. ProSource Texas has just moved into the end-cap space, which was previously occupied by the landlord. As a supplier for the flooring, kitchen and bath industries, ProSource Texas will spend three months building out its new location. The space will be converted into a showroom with additional storefront windows and air conditioning. The anticipated opening is May 1. ProSource Texas will become the fifth tenant in Sandy Lake Business Center. The office/showroom building was developed in 2005 on a four-acre tract, which is a gateway property to the Freeport North park from Texas 121. The property also has easy access to I-635 and TX 114. Whitney Harris of Century 21 Lynch & Associates represented the tenant.

February 3, 2015

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