SACRAMENTO, CALIF. — Grove Investment Co. has leased 285,016 square feet of office space to the California Highway Patrol (CHP). Located at 591, 601 and 611 N. 7th St. in Sacramento, CHP will use the property for a state headquarters campus. The three-building property comprises Continental Plaza. Bill Newland, Clyde Rawlings and Toss Vallentine of Grubb & Ellis represented the lessor, Newport Beach, Calif.-based Grove Investment Co., in the transaction; Cornish & Carey represented the lessee. Terms of the 20-year lease were not disclosed.
NEW YORK CITY — Chatham, N.J.-based Cronheim Mortgage has arranged a total of $18 million in financing for three office buildings located in Manhattan, New York City. Bruce Theuerkauf of Cronheim secured an $11 million loan for a 14-story, 100,165-square-foot office building located at 1270 Broadway Ave. The Class B building also includes ground-level retail space. The loan carries a 5-year term with a 30-year amortization schedule. Andrew Stewart of Cronheim secured a $4 million loan for a six-story, 74,425-square-foot office building located at 45 W. 21st St. The building is currently occupied by 20 tenants, one of which is leasing the first floor of the building as retail space. The loan carries an 8-year term with a 25-year amortization schedule and a 6.24 percent interest rate. Stewart also arranged a $3 million loan for a 12-story, 52,000-square-foot office building located at 32 E. 31st St. The building also includes ground-floor and second-story retail space. The loan carries a 15-year term with a 25-year amortization schedule and a 6.26 percent interest rate. The lenders and borrowers in each transaction were not disclosed.
ANAHEIM, CALIF. — Panattoni Development Company is redeveloping a 60-acre project in Anaheim. The first two phases include the revitalization of Building 3370, a 204,989-square-foot facility, and Building 3330, a 195,798-square-foot facility, both of which formerly served as part of The Boeing Company’s Anaheim campus. The renovation for Building 3370 includes a retrofit of the existing two-story research and development/office building into a 204,989-square-foot office building, showcasing an enhanced entry with feature walls and new windows. Plans for Building 3330 includes retrofitting the existing, 6-story office building with a new exterior façade on all sides. Designed by Ware Malcomb, the project is seeking LEED certification and features recycled materials, a certified cool roof, water efficient fixtures, low VOC materials, reclaimed water use, drought tolerant landscaping, a construction waste management plan, a building recycling program and certified wood. Irvine, Calif.-based Panattoni Construction Inc. is serving as general contractor. Groundbreaking is slated for December.
LANCASTER, PA. — CB Richard Ellis (CBRE) has negotiated the sale of Imaging Center of Lancaster, a 12,630-square-foot, Class A medical office building located at 924 Red Rose Ct. in Lancaster, for $2.48 million. Situated on 2.2 acres within close proximity to Lancaster General Hospital Health Campus, the single-tenant property is occupied on a long-term basis by Lancaster Outpatient Imaging. Stephen Marzullo of CBRE’s Greater Philadelphia office, along with Kevin Fry of the firm’s Harrisburg, Pa., office represented the seller, RAIT Financial Trust. The buyer was not disclosed.
VENTURA, CALIF. — Newport Beach, Calif.-based CT Realty Corp. has acquired Ventura Professional Center, which is located at 5700, 5720 and 5740 Ralston St. in Ventura. Security National Properties Funding II sold the three-building complex for $11.75 million. Situated within the Victoria Avenue corridor, the property consists of 113,346 square feet of office space. CT Realty plans to invest $1.2 million to renovate the property, which is currently 63 percent occupied by 22 tenants. Malcolm Rickards of Colliers International represented the buyer; Buz Miller and Greg Kasner, also of Colliers International, represented the seller in the transaction. Equity financing was provided by CT California Fund VI and private investors, while debt financing was provided by Pacific Coast Capital Partners.
FLORHAM PARK, N.J. — CB Richard Ellis (CBRE) has closed on the first part of a $180.7 million office sale in Florham Park. The property, Park Avenue at Morris County, is a six-building, Class A office campus situated on approximately 136 acres at 100-600 Campus Dr.; it contains 1.12 million square feet of office space. The campus is 99 percent occupied by a tenant roster that includes Accenture, BASF, BlackRock, The Hartford Fire Insurance Company, Mapfre Reinsurance, McKinsey & Co., Merrill Lynch, PricewaterhouseCoopers, Quincy Mid Atlantic, Smith Barney, UBS and Wachovia Securities. Jeffrey Dunne, Kevin Welsh and David Gavin of CBRE’s New York Institutional Group, along with Samuel Buckley of the firm’s Saddle Brook, N.J., office, represented the seller in the initial closing of the 100 and 200 Campus Dr. buildings. The team also procured the buyer, KBS Real Estate Investment Trust II. The four remaining buildings will close in the fourth quarter of 2008.
ISELIN, N.J. — Parsippany, N.J.-based SJP Properties is set to develop Metropark Corporate Center, a 10-story, Class A office tower located at the intersection of Wood Avenue South and Middlesex-Essex Turnpike, adjacent to the Metropark Train Station, in Iselin. The 300,000-square-foot building, along with a five-story parking garage, will be constructed within the Metropark office campus. SJP will also pursue LEED certification for the development from the U.S. Green Building Council. Metropark Corporate Center has received final site approvals, and construction will commence immediately after leasing goals are reached.
PEARLAND, TEXAS — The Houston office of Holliday Fenoglio Fowler (HFF) has arranged a $12.84 million construction loan for the development of ZT Shadow Creek Business Center, a Class A, speculative office project located within the Shadow Creek Ranch master-planned community in Pearland. Situated on 3.5 acres, construction will consist of an 80,000-square-foot building, which is due for completion in fall 2009. The project represents the first phase of a multi-phase office development in Shadow Creek Ranch. The loan carries a 24-month term with an 80 percent loan-to-value ratio. Charlie Gasper and Colby Mueck of HFF secured the loan through Sterling Bank, which was represented by Lance Schielack. The borrower was ZT Group Business Center One LP. The project is being developed by a partnership between T.A.B. Lone Star Holdings, which is an affiliate of the Houston-based ZT Group of Companies, and Houston-based Wallace Bajjali Development Partners.
RENO, NEV. — Marcus & Millichap has brokered the disposition and acquisition of a 79,533-square-foot office building, which is located at 10375 Professional Circle in Reno. Built in 2008, the property is situated on a 5.04-acre lot within the Reno Tahoe Tech Center. The location offers close proximity to the Reno Tahoe International Airport and Meadow Wood Regional Mall, as well as visibility from Interstate 395. Nicholas Scelsa and Kenneth Blomsterberg of Marcus & Millichap represented the undisclosed seller, while Kirk Trammel, Will Stuart and San Goldenberg, also of Marcus & Millichap, represented the buyer, which was not disclosed. Terms of the transaction were not released.
COLUMBIA, S.C. — Jackson, Miss.-based Parkway Properties has sold the 460,000-square-foot Capitol Center office property, located at 1201 Main St. in Columbia, to an undisclosed party for $47.5 million. Sale of the center, which is 97.5 percent occupied, will bring Parkway a gain of $11.7 million. The gross sales price represents a 9.5 percent cap rate.