NEW YORK CITY — Private equity firm KPG Funds has entered into a 99-year ground lease with The Salvation Army to develop Le Gallerie, a 57,000-square-foot office building at 132 W. 14th St. in Manhattan’s Greenwich Village. Construction is underway and scheduled for a January 2022 completion. James Nelson, Charles Kingsley, Erik Edeen and Alexandra Marolda of Avison Young, along with Andreas Metzger from The Corcoran Group, represented The Salvation Army in the lease negotiations.
DENVER — TerraCap Management has purchased Denver Corporate Center I, formerly known as The Office at DTC, in Denver. Origin Investments and Hamilton-Titan Partners sold the asset for $31.1 million. Situated within the Denver Tech Center submarket, the 11-story building features 193,000 rentable square feet of Class A office space. The property was built in 1980. TerraCap acquired two sister buildings at this location in August 2019 for $71 million and holds the three buildings under one ownership. Tim Richey, Charley Will, Chad Flynn and Jenny Knowlton of CBRE represented the sellers in the deal. Brightspire Capital provided debt financing for TerraCap with assistance from C.J. Kelly and Jeff Halsey of CBRE’s debt team. TerraCap hired JLL to handle leasing of the property and DPC as property manager.
RALEIGH, N.C. — JLL Capital Markets has secured equity and debt financing for the development of a 533,889-square-foot office campus in Raleigh that will serve as the corporate headquarters for Bandwidth Inc., a locally based software firm. The project is slated for completion in first-quarter 2023. Roger Edwards, Travis Anderson, Michael George, Coler Yoakam and Warren Johnson of JLL arranged the financing on behalf of the developer, a joint venture between East West Partners and Capitol Broadcasting Co. USAA Real Estate provided equity for the build-to-suit project, and Wells Fargo provided a construction loan. The loan and equity amount were not disclosed. The new campus will feature 460,073 square feet of Class A office space, a 29,091-square-foot fitness center, 13,425-square-foot recreational area, 31,300-square-foot Montessori School, an onsite amphitheater, walking trails, café, recreation fields and an onsite parking garage that will provide approximately 1,859 spaces. Located at the corner of Reedy Creek and Edwards Mill roads, the office building will be situated on 23.3 acres. Bandwidth plans to consolidate its three existing locations in Raleigh into the new development. The firm also owns 17 adjacent acres suitable for future expansion.
SAN JOSE, CALIF. — Global private investor KKR has purchased HQ @ First, an office campus in Silicon Valley totaling 603,666 square feet. Mori Trust Co. Ltd., a real estate development firm based in Japan, sold the campus to KKR for $535 million, according to several media outlets. The LEED Gold-certified property was fully leased at the time of sale to data memory and storage manufacturer Micron Technologies and IT securities firm Zscaler. The campus is located at 110, 120, 130 Holger Way in San Jose in the heart of Silicon Valley’s “Golden Triangle,” which is home to globally renowned tech firms such as Cisco Systems, Adobe, PayPal and eBay. Steven Golubchik, Edmund Najera, Jonathan Schaefler and Darren Hollak of Newmark brokered the transaction. KKR purchased HQ @ First via its KKR Real Estate Select Trust fund and selected San Francisco-based Drawbridge Realty to manage the office campus. “HQ @ First is a marquee property with great amenities, including onsite lab facilities, and access to Silicon Valley’s immense pool of talent,” says Justin Pattner, partner and head of real estate equity in the Americas at KKR. “We believe well-located trophy assets that can deliver a dynamic work environment for innovative …
BAYTOWN, TEXAS — A partnership between local developer D’Agostino Cos. and TGS Cedar Port Partners LP will develop Cedar Port Office Plaza, a 132,000-square-foot project in the eastern Houston suburb of Baytown. Situated near Port Houston, the complex will consist of a 79,200-square-foot building and a 52,800-square-foot building that will be located within the 15,000-acre Cedar Port Industrial Park. Construction is scheduled to begin in October and to be complete in the first quarter of 2023. NAI Partners is leasing the project. TGS Cedar Port also plans to relocate its office headquarters to Cedar Port Office Plaza.
HOUSTON — Aspen Technology Inc., a metro Boston-based software developer, has signed a 79,867-square-foot office lease renewal at 2500 CityWest Blvd. in Houston. Win Haggard Jr. and Vince Strake of Cushman & Wakefield, along with internal agent Dennis Tarro of Patrinely Group, which owns the property in partnership with USAA Real Estate, represented the landlord in the lease negotiations. The representative of the tenant was not disclosed.
TUCSON, ARIZ. — CBRE has arranged the sale of an office building located at 222 E. Fifth St. in Tucson. 222 Building LLC sold the property to 222 Tucson LP for $8.9 million. Bryce Horner of CBRE represented the seller in the transaction. Originally constructed in 1952 and redeveloped in 2014, the three-story property features 25,350 square feet of Class A office space. Mister Car Wash (NYSE: MCW), which went public in June, utilizes the property as its corporate headquarters.
NEW YORK CITY — New York City-based Paramount Group Inc. (NYSE: PGRE) has received an $860 million loan for the refinancing of 1301 Avenue of the Americas, a 1.7 million-square-foot office building in Midtown Manhattan. An undisclosed lender provided the five-year, interest-only loan. Designed by Skidmore, Owings & Merrill, the 45-story tower is located between West 52nd and 53rd streets and provides lower-level access to Rockefeller Center. In addition, the property, which was 71.5 percent leased at the time of the loan closing, features 30,000 square feet of retail space. According to Wikipedia, Uris Buildings Corp. originally developed 1301 Avenue of the Americas in 1964. J.C. Penney purchased the building in 1977 to serve as its new headquarters, only to relocate to the Dallas area 11 years later.
BOCA RATON, FLA. — Grover Corlew, a locally based real estate investment and development firm, has purchased the 109,497-square-foot Bank of America Tower in downtown Boca Raton. The undisclosed seller sold the office building in an off-market transaction for $44.6 million. In addition to Bank of America, the building’s tenants include Charles Schwab and Waypoint Residential. Originally built in 1970, the eight-story Bank of America Tower offers onsite management and a building engineer, Wi-Fi access in the lobby, a conferencing facility and free and secure surface and garage parking. Located at 150 East Palmetto Park Road, Bank of America Tower is located 28.7 miles from Palm Beach International Airport and 4.1 miles from Boca Raton Airport. Additionally, the building is adjacent to Royal Palm Place and within walking distance to Mizner Park and the future Brightline Station. Dominic Montazemi, Scott O’Donnell and Mike Davis of Cushman & Wakefield brokered the transaction. Jason Hochman and Ron Granite of Cushman & Wakefield arranged acquisition financing on behalf of Grover Corlew through Wells Fargo Bank.
HOLMDEL, N.J. — Somerset Development will open Campus, a 72,000-square-foot coworking space, at its Bell Works mixed-use development in Holmdel, located in the eastern coastal part of the state. G3 Architects and NPZ Style & Décor designed the space, which will offer a variety of workspaces, from breakout rooms to private suites to conference facilities. Members will also have access to the property’s retail and restaurant offerings. The opening is slated for the fourth quarter. Bell Works is a redevelopment of the former Bell Labs research and development facility.