Office

Deka Immobilien Acquires Google-Anchored Office Complex in Seattle’s South Lake Union for $802M

by Katie Sloan February 24, 2022

SEATTLE — German investment firm Deka Immobilien has acquired Lakefront Blocks, a 635,000-square-foot office complex in Seattle’s South Lake Union neighborhood, for $802 million. Tech giant Google is the anchor tenant. Completed in 2019 and designed by Graphite Design Group, the development spans two city blocks — Block 31 and Block 25 — offering four six-story office buildings. The property also includes two apartment towers, Helm and Mera, which were not included in the transaction. The office buildings on Block 31 are separated by a sky bridge and include retail space leased to Tapster, a self-serve beer and wine tasting bar, and 203 Degrees Fahrenheit coffeehouse. The buildings on Block 25 are separated by a public alley. Kevin Shannon, Alex Foshay, Nick Kucha, Ken White, Rob Hannan, Jesse Ottele and Michael Moll of Newmark brokered the transaction on behalf of the seller, Seattle-based Vulcan Real Estate. Kevin Smith, Gerry Casimir, Bill Burke, Nikki Lam and Tom Weber of Cushman & Wakefield advised the buyer in the transaction and will assist with ongoing management of the campus. “This project, in my opinion, was the best core office offering on the West Coast in 2021,” says Shannon. “The combination of credit, asset quality, ESG [environmental, social …

February 24, 2022

Acquisitions California Office Western

Radius Investments Divests of 59,175 SF Chesapeake Corporate Center in San Diego

by Amy Works February 23, 2022

SAN DIEGO — Radius Investments has completed the sale of Chesapeake Corporate Center, a multi-tenant office building in San Diego. New York-based The Sason Organization acquired the property for an undisclosed price. Located at 9555 Chesapeake Drive on 3.2 acres, Chesapeake Corporate Center features 59,175 square feet of office space, three individual lobbies, stairwells, elevators and onsite parking. Originally built in 1984, the property has undergone $2.8 million in renovations to date. At the time of sale, the building was 66 percent leased to four tenants: Cobham Advanced Electronic Solutions, California Department of Health Care Services, The Packard Cos. and Workiz Inc. Kevin Shannon, Brunson Howard, Paul Jones, Sean Fulp, Kevin White, Ryan Plummer and Mark Schuessler of Newmark represented the seller in the transaction.

February 23, 2022

California Development Mixed-Use Multifamily Office Retail Western

Holland Partner Group Starts Construction of $400M Courthouse Commons Mixed-Use Tower in San Diego

by Amy Works February 22, 2022

SAN DIEGO — Holland Partner Group, North America Sekisui House and Lowe have started construction of Courthouse Commons, a 37-story mixed-use project in San Diego. The $400 million project will feature 270,000 square feet of office space, 19,000 square feet of retail space and 431 apartments. Completion is slated for first-quarter 2024. Designed by Carrier Johnson + CULTURE, with Holland Construction serving as general contractor, the building will offer office spaces with 39,000-square-foot floor plates, floor-to-ceiling glass and outdoor balconies; a first-floor lobby with indoor/outdoor dining for tenants, ground-floor restaurants and retail shops; direct access to building parking; and tenant community engagement programs by onsite property manager Hospitality at Work. The ninth floor and roof decks offer panoramic views; indoor/outdoor meeting spaces; green roof space with outdoor seating and entertainment areas; private workspaces; conference rooms; flexible spaces to accommodate a variety of events; indoor/outdoor fitness facilities; and a dog run with pet turf, seating, shade and dog wash. Tony Russell and Richard Gonor of JLL are handling leasing for the office component.

February 22, 2022

Acquisitions Georgia Office Southeast

CP Group, Cohen & Steers Purchase Buckhead Centre Office Campus in Atlanta

by Julia Sanders February 22, 2022

ATLANTA — Boca Raton, Fla.-based CP Group and an affiliate of New York City-based Cohen & Steers Capital Management Inc. have purchased Buckhead Centre, a 169,000-square-foot office property in Atlanta’s Buckhead Village. The seller and sales price were not disclosed. CP Group will manage the building. Steve Devinney, Billy Graddy and Jack Teken with Stream Realty Partners will oversee leasing for the property. Buckhead Centre includes two office buildings: an eight-story tower and an adjacent seven-story tower. The structures are situated on two contiguous land parcels totaling over four acres, including an attached restaurant building and structured parking. CP Group plans to renovate the buildings. The property has boasted an average office occupancy of 95 percent over the past 30 years. Located at 2970 Peachtree Road, the office buildings are within Buckhead Village, which offers over 800,000 square feet of shops, dining, residences and office. Buckhead Village offers tenants including Dior, Veronica Beard and Warby Parker. The property is also situated 8.3 miles from downtown Atlanta.

February 22, 2022

Acquisitions Florida Office Southeast

Joint Venture Acquires Two Office Buildings in Downtown West Palm Beach

by Julia Sanders February 22, 2022

WEST PALM BEACH, FLA. — A joint venture between Wexford Real Estate Investors, Related Cos. and Key International has acquired two office buildings in downtown West Palm Beach. The seller and sales price were not disclosed. The two buildings are each 60,000 square feet and have a half-acre auxiliary parking lot. Located at 400 and 450 S. Australian Ave., the office properties are located close to Interstate 95 and the proposed University of Florida graduate campus that is currently being planned. The two office buildings are also situated within one mile of The Square, the open-air shopping, dining and entertainment complex.

February 22, 2022

Acquisitions Life Sciences Office Texas

Welcome Group Buys Two Office, Lab Buildings Totaling 124,291 SF in San Antonio

by Taylor Williams February 22, 2022

SAN ANTONIO — Welcome Group, a Houston-based investment firm, has purchased two office and lab buildings in San Antonio totaling 124,291 square feet. The first building spans 80,431 square feet, sits on an 11.9-acre site and is leased by KCI USA Inc., a provider of wound care services and treatments. The second facility totals 43,860 square feet and was built in phases between 1987 and 1995. Frost Bank provided an undisclosed amount of financing for both acquisitions. Ryan Wassaff of Welcome Realty Advisors, along with internal agents Cole Bercher and John Wilson, represented Welcome Group in the deals. John Taylor of JLL and Luis Garza of Transwestern respectively represented the sellers of the first and second buildings.

February 22, 2022

Acquisitions New Jersey Northeast Office

Marcus & Millichap Brokers Sale of 37,135 SF Office Building in Fords, New Jersey

by Taylor Williams February 22, 2022

FORDS, N.J. — Marcus & Millichap has brokered the sale of King’s Road Office Center, a 37,135-square-foot building in Fords, located about 30 miles south of Manhattan. The property was 92 percent leased at the time of sale and fetched a price of roughly $4.3 million. Alan Cafiero and Brent Hyldahl of Marcus & Millichap brokered the deal on behalf of the seller, a limited liability company. Additional terms of sale were not disclosed.

February 22, 2022

Leasing Activity New York Northeast Office

Newmark Negotiates 26,000 SF Office Lease in Manhattan’s SoHo District

by Taylor Williams February 22, 2022

NEW YORK CITY — Newmark has negotiated a 26,000-square-foot office lease at The Devlin Building, located at 459 Broadway in Manhattan’s SoHo District. Howard Kesseler and Alexander Kesseler of Newmark represented the landlord, The Chetrit Organization, in the lease negotiations. Sinvin Commercial Real Estate represented the tenant, F. Schumacher & Co., a designer of luxury textile products.

February 22, 2022

Market Reports Midwest Midwest Market Reports Office Ohio

APTC: Don’t Just Accept Your Tax Assessment

by Kristin Harlow February 22, 2022

By Cecilia Hyun, Siegel Jennings Co. Since early 2020, the COVID-19 pandemic has upended lives and disrupted the normal course of businesses, including those in the commercial real estate market. As in many other sectors, however, this public health crisis has not affected all commercial properties equally. Real estate occupied by essential businesses such as grocery stores, sellers of household goods and warehouse clubs, for example, have weathered the pandemic well. A few have even increased their market share. By contrast, many office buildings, hospitality and non-essential retail properties have suffered severely. Taxing jurisdictions and assessors have responded to the crisis with varying degrees of success. The Ohio Legislature passed special legislation (spearheaded by Siegel Jennings Managing Partner Kieran Jennings) to allow a onetime, 2020 tax year valuation complaint for a valuation date of Oct. 1, 2020, since the usual tax lien date of Jan. 1 would not have shown the effects of COVID. Other assessors applied limited reduction factors to account for the sudden pandemic-induced decrease in property values. As values recover, it is important for taxpayers to monitor still unfolding consequences as they review their property tax assessments. Initially, hotels and experiential property uses suffered the steepest losses …

February 22, 2022

California Market Reports Office Western Western Market Reports

The Inland Empire’s Office Sector Comes Into its Own

by Jeff Shaw February 22, 2022

By Mark McAdams, Vice President, JLL While the Inland Empire is more well-known for its industrial real estate, the region’s office market has continued with its own success and stability pre- and post-COVID. As employees of office buildings seek refuge from high home prices in neighboring Los Angeles and Orange counties, occupiers equally appreciate the accommodating office rental rates while supporting their employee’s draw to the region. The current office market is in nearly the same place it was at the end of the first quarter of 2020 when COVID appeared on the scene. The overall market vacancy rate stands at 7.8 percent. Some of the submarkets have lower vacancies today than in the first quarter of 2020. Some smaller submarkets have seen even lower vacancy rates down to unprecedented levels at 3 percent to 5 percent. Only one submarket, San Bernardino, has a double-digit vacancy rate at 12.6 percent, and that is still considered healthy. Anything sub-10 percent is generally considered a landlord’s market. These are historically low vacancy rates that have rarely been seen since the area started developing the bulk of its office inventory in the mid-1980s. The pandemic put a hold on rental rate increases that had …

February 22, 2022

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