SAN DIEGO AND BALTIMORE — Realty Income Corp. (NYSE: O) has completed the spin-off of substantially all of its office assets into Orion Office REIT Inc. (NYSE: ONL), a new, independent, publicly traded REIT. Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the United States. The portfolio is leased primarily on a single-tenant, net-lease basis to creditworthy tenants. Under the terms of the spin-off, Realty Income stockholders received one share of Orion common stock for every 10 shares of Realty Income common stock held as of the record date of Nov. 2, 2021. Wells Fargo Securities served as lead financial advisor, Moelis & Co. served as financial advisor and Latham & Watkins LLP acted as legal advisor to Realty Income in connection with the spin-off. Realty Income is based in San Diego, while the spin-off, according to SEC filings, is based in Baltimore.
DALLAS — A fund sponsored by CBRE Investment Management has provided a $66.3 million acquisition loan for The Plaza at Solana, a 366,000-square-foot office campus located in the Southlake/Westlake submarket of Dallas. The three-building property was recently renovated and includes 21,000 square feet of retail and restaurant space. Cullen Aderhold of JLL arranged the debt on behalf of the borrower, Boston-based Albany Road Real Estate Partners. The floating rate loan has an initial term of three years and can be extended up to an additional two years.
NEWARK, N.J. — JLL has arranged a $113.5 million acquisition loan for a portfolio of two downtown Newark office buildings totaling roughly 816,000 square feet. The portfolio also includes a 901-space parking garage. Originally built in the 1920s, the buildings are leased on a long-term basis to The State of New Jersey, which houses more than 3,500 employees across 35 departments at the site. Michael Klein, Jon Mikula and Matthew Pizzolato of JLL, along with Brad Domenico of Progress Capital, arranged the three-year, floating-rate loan through ACORE Capital. The borrower, a partnership between SHIFT Capital, The Hanini Group and CoInvestment Partners, will use a portion of the proceeds to fund capital improvements.
BOSTON — A partnership between True North Management Group and Boston-based Celera Properties has purchased a two-building office complex in the northern Boston suburb of Andover with plans to convert the property into a life sciences facility. The complex spans 233,726 square feet. Greg LaBine and Martha Nay of JLL arranged a $35.3 million floating-rate loan through OceanFirst Bank on behalf of the partnership. Proceeds will be used to acquire and reposition the complex.
DALLAS — Third-party logistics company Worldwide Express has signed a 24,480-square-foot office headquarters lease at The Stack, a 16-story office building that recently opened in the Deep Ellum area of Dallas. The Stack features a fitness center, coffee/cocktail lounge and an amenity terrace with views of the Dallas skyline. Transwestern represented the tenant in the negotiations for the 10-year lease. Altschuler & Co. represented the landlord, a partnership between Westdale Real Estate Investment & Management, Ivanhoe Cambridge and Hines.
BOXBOROUGH, MASS. — Massachusetts-based development and investment firm Campanelli has acquired the 409,000-square-foot former CISCO campus in Boxborough, about 30 miles west of Boston. The property was built in 2002 as the California-based technology and cybersecurity firm’s Massachusetts headquarters. Campanelli acquired the campus, which spans 110 acres, in partnership with TriGate Capital. Campanelli is working on a master plan to add up to 1 million square feet of commercial space that could include research and development, lab or office space and will rebrand the property as The Park at Beaver Brook. Newmark has been tapped to lead leasing efforts.
PHOENIX — A joint venture between San Antonio, Texas-based USAA Real Estate and Tempe, Ariz.-based Metro Commercial Properties has completed the disposition of Norterra West Two, an office property located at 25800 N. Norterra Parkway in Phoenix. SCD Norterra II LLC, an entity controlled by Phoenix-based Silver Creek Development, acquired the property for an undisclosed price. The three-story suburban office building features 144,800 square feet of office space with approximately 50,000-square-foot floor plates, up to 15-foot slab-to-slab ceiling heights, dual restroom cores and triple redundant stairwells. Chris Toci and Chad Littell of Cushman & Wakefield represented the seller. Charles Essig of Silver Creek represented the buyer in the deal.
BOSTON — Home security services provider SimpliSafe has signed a 150,000-square-foot office lease at 100 Summer Street, a 1.1 million-square-foot building in downtown Boston. SimpliSafe will relocate from its existing 80,000-square-foot space at 294 Washington Street next fall. Cushman & Wakefield represented the tenant in the lease negotiations. Newmark represented the landlord, Boston-based private equity firm Rockpoint Group.
OAK HARBOR, WASH. — Marcus & Millichap has brokered the sale of Beach View Plaza, an office property located in Oak Harbor. A private investor sold the asset to an undisclosed buyer for $3.7 million. Brian Mayer and Stren Lea of Marcus & Millichap’s Seattle office represented the seller in the deal. Located at 275 SE Pioneer Way, the property features 25,399 square feet of office space. At the time of sale, Beach View Plaza was 92.4 percent occupied with 62.9 percent of the property leased to Washington State government entities and 27.3 percent to People’s Bank. Prior to closing, Washington State Department of Social & Health Services extended its lease for five years.
ATLANTA — GID Development Group, a real estate developer, owner and operator, has broken ground on the first phase of High Street, a $2 billion, 36-acre mixed-use development in Atlanta’s Central Perimeter submarket. Phase I of High Street will deliver 150,000 square feet of retail and restaurants, approximately 600 apartments, 90,000 square feet of new office space, 222,000 square feet of existing office and an approximately 7,500-square-foot lawn. Located at the intersection of Perimeter Center Parkway and Hammond Drive, High Street will be situated close to the Dunwoody MARTA Station and surrounded by the largest office submarket in the Southeast, according to GID. Upon completion of all phases, High Street will encompass 672,000 square feet of Class A office space; a 400-key hotel; 400,000 square feet of shopping, dining, fitness and entertainment; and 3,000 residential units. In September, Puttshack, a mini-golf bar and restaurant destination, was the first anchor tenant to be announced for the project, and will open as part of the first phase of High Street. The retailer will occupy a 26,000-square-foot space and feature four tech-driven, mini golf courses. Molly Morgan and Allie Spangler of JLL are leading leasing efforts for the retail portion of High Street. …