SANTA CLARA, CALIF. – Old Mission Center, a 30,000-square-foot office property in Santa Clara, has sold to an unnamed buyer for $7 million. The center is located at 1601 Civic Center Drive. It is situated in Silicon Valley, near the newly built Santa Clara Town Centre. The sale was executed by J.J. Taughinbaugh and Yuri Sergunin of Marcus & Millichap’s Palo Alto office.
DENVER – A multi-tenant medical office building that houses the HealthONE Rose Surgery Center and Cherry Creek Eye Center has sold to Jaman Solutions LLC for an undisclosed sum. The 19,026-square-foot center is located at 4999 East Kentucky Ave. in the Glendale submarket. Jaman was represented by Eric Schierburg of Marcus & Millichap. The seller, CCEC LLC, was represented by Brian C. Smith of the same firm.
OAKBROOK TERRACE, ILL. — NAI Hiffman has signed a new lease for its corporate headquarters at One Oakbrook Terrace, located at the intersection of Butterfield Road and 22nd Street in Oakbrook Terrace. The provider of commercial real estate services has occupied space in the building for more than 10 years. The new lease consolidates NAI Hiffman’s brokerage, management, marketing and research, and accounting services onto an entire floor, taking up more than 20,000 square feet. Jim Adler and Michael Flynn of NAI Hiffman’s office services group represented NAI Hiffman in the transaction. Brian Edgerton of NAI Hiffman represented the institutional owner.
MILWAUKEE — Siegel-Gallagher has arranged a 17,432-square-foot office lease in Milwaukee. Robertson Ryan & Associated Inc. will occupy space within Plaza East Office Center located at 330 E. Kilbourn Ave. Shaun Dempsey and John Kuhn of Siegel-Gallagher represented the tenant in the transaction. Tishman Speyer was the landlord.
HARTFORD, CONN. — Meridian Capital Group has arranged a $28.1 million CMBS loan for the acquisition of an office property located at 100 Pearl St. in Hartford. The borrowers are SGS Pearl LLC and Shelbourne Pearl LLC. The 10-year loan, which was provided by a CMBS lender, features a 70 percent loan-to-cost ratio and a fixed rate with two years of interest-only payments. Built in 1989, the 17-story property features 281,000 square feet of office space. On-site building amenities include a parking garage, a fitness center, conference rooms, a food service lounge with seating, an art gallery, building concierge and 24-hour security. Shaya Ackerman, Steven Adler and Jacob Schmuckler of Meridian Capital Group negotiated the transaction.
NEEDHAM, MASS. — RK Centers has purchased a two-story office building, located at 50 Cabot St. in Needham. An affiliate of The Bulfinch Companies sold the 42,000-square-foot property for $9.8 million. KC Centers plans to use the property as its new corporate headquarters. Andrew Sacher of AIS Development represented the buyer in the transaction.
LOS ANGELES – Independent television station KTLA-TV has renewed its lease for 94,205 square feet at Sunset Bronson Studios in Hollywood. The studio is located on the southeast corner of the Sunset Bronson, with frontage along Sunset Boulevard. The station has been headquartered at this location for nearly 60 years. KTLA plans to renovate its space. The lease renewal will go through 2030. The station is owned by Tribune Media, which was represented by CBRE’s Todd Doney, Paul Stockerll and Adam Seltzer. The landlord, Hudson Pacific Properties, was represented by Blake Mirkin of the same firm.
When it comes to grading commercial office space, there is no doubt that location is still king — and other factors such as price, architecture, functionality and amenities all take a back seat to the property’s location. Since we assign buildings letter grades (A and B), let’s take a look at what these letter combinations mean and the relationship of quality to location. In these scenarios, the first letter describes the building’s class (A or B) and the second letter represents the desirability of its location (A or B). The A/A designation refers to Class A buildings in Class A locations. It’s no surprise that this is the first category of office space absorbed when a market heats up and leasing volume intensifies. During this stage of the cycle, rental rates to inch upward, and more importantly, lease renewal terms tighten as landlords sense a shift toward the middle. For Memphis, Tenn., the total vacancy for Class A space in the East Memphis submarket decreased from 2.9 percent during third quarter 2014 to 2 percent in fourth quarter 2014. Almost 24,000 square feet of Class A office space in the East submarket was leased during fourth quarter 2014, and this …
DALLAS AND HOUSTON — Caddis has sold its southwest medical office building portfolio to Griffin-American Healthcare REIT III Inc. The portfolio, totaling 182,528 square feet, includes two medical office buildings located in metro Houston, one medical office building in metro Dallas in addition to a hospital/medical office building complex in Durango, Colo. The Texas properties include Winding Way Medical Plaza, a two-story, 27,405-square-foot building, which was built in 2008 and is located in Friendswood. It is 92 percent occupied. Memorial Hermann is the anchor tenant; South Texas Medical Clinic, a two-story, 55,000-square-foot medical office building located in Wharton. It is fully leased to Memorial Hermann Medical Group. Services in the building include family practice, internal medicine, obstetrics/gynecology, neurology, radiology and a lab and pharmacy. It was built in 1987; Keller Medical Plaza, a 31,070-square-foot, retail-style building, which was completed in 2011 in Keller. It is 94 percent leased, primarily to Texas Health Resources (THR) and THR affiliates, including anchor primary care and sports medicine tenants.
PORTLAND, MAINE — North River Co., an affiliate of Waterfront Maine, has acquired Portland Square in downtown Portland for $66 million. Located at One and Two Portland Square, the two-building property features 260,000 square feet of office and retail space as well as adjacent and underground parking areas. Originally constructed in the late 1980s, the property is currently 97 percent leased to a variety of tenants, including TD Bank, Wells Fargo, Prudential and Stone Coast Fund Services. Drew Sigfridson of CBRE | The Boulos Company represented the buyer in the transaction. The seller was a REIT that had owned the property for nearly a decade.