Office

Prime US REIT Buys Sorrento Towers Office Complex in San Diego from Shorenstein Properties for $146M

by Amy Works July 29, 2021

SAN DIEGO — Prime US REIT has purchased Sorrento Towers, a Class A office complex located at 5355 and 5375 Mira Sorrento Place in San Diego’s Sorrento Mesa submarket. Shorenstein Properties sold the asset for $146 million. Built in 1990, Sorrento Towers features two seven-story buildings totaling 296,327 square feet of office space atop a multi-level parking structure. At the time of sale, the property was 98.2 percent occupied. Kevin Shannon, Brunson Howard, Ken White and Paul Jones of Newmark represented the seller in the deal. KBS serves as the United States-based asset manager for the Singapore-based buyer’s portfolio, which includes identifying and sourcing this asset on Prime’s behalf. Shorenstein acquired the property in 2018 and increased occupancy to 98 percent. Since 2018, the property underwent more than $8.4 million in renovations, including an expanded first-curtain wall that captured additional ground-floor area, a renovated open-air plaza and revitalized main lobbies, elevator lobbies, elevator cabs and restrooms. The renovation also included the addition of an amenity space, including a fitness center, conferencing spaces, a training center and multiple outdoor meeting areas. Shorenstein also invested approximately $16.7 million for new, best-in-class tenant improvements within the last two years. The new owners are …

July 29, 2021

Development Office Washington Western

PGIM, Capstone Partners Purchase Office Development Site in Bellevue for $32.5M

by Amy Works July 29, 2021

BELLEVUE, WASH. — PGIM and Capstone Partners have acquired ParqHouse Bellevue, a 34,335-square-foot development site located at 305 108th Ave. NE in Bellevue. Fana Group sold the asset for $32.5 million. ParqHouse Bellevue is situated adjacent to major parks, restaurants and amenities in downtown Bellevue. Originally slated for a residential development, the new owners plan to build on office project at the site instead of the proposed residential units. The original proposal included 274 residential units, 6,600 square feet of retail space and 337 parking stalls. Kevin Shannon, Ken White and Tim O’Keefe of Newmark represented the seller in the deal.

July 29, 2021

Leasing Activity Michigan Midwest Office

DT Midstream to Open National Headquarters in Downtown Detroit

by Kristin Harlow July 29, 2021

DETROIT — DT Midstream Inc. (NYSE: DTM), a natural gas pipeline, storage and gathering provider, will open a new corporate headquarters within Bedrock’s Ally Detroit Center downtown. DTM is slated to occupy 26,000 square feet on the 29th floor beginning in November. The office space will accommodate up to 84 employees and will be home to the company’s executive leadership team. The Detroit headquarters will oversee assets in Pennsylvania, West Virginia, Ohio, New York, Louisiana and Texas. DTM completed its spinoff from DTE Energy on July 1.

July 29, 2021

Acquisitions Indiana Midwest Office

Marcus & Millichap Brokers $5.6M Sale of Office Portfolio in Indianapolis

by Kristin Harlow July 29, 2021

INDIANAPOLIS — Marcus & Millichap has brokered the sale of the Banta Trails office portfolio in Indianapolis for $5.6 million. The four-building portfolio spans 79,246 square feet. All of the buildings are located on the same street. Forest Bender and Joseph DiSalvo of Marcus & Millichap marketed the portfolio for sale and procured the buyer, a local ownership group. The portfolio had been owned by a single ownership group up until 2016 when Buildings III and IV were sold to an owner-occupant.

July 29, 2021

Office Top Stories Washington Western

Boston Properties to Acquire Safeco Plaza Office Tower in Seattle for $465M

by Katie Sloan July 29, 2021

SEATTLE — Boston Properties Inc. (NYSE: BXP) has entered into an agreement to acquire Safeco Plaza, a 50-story, Class A office tower located at 1001 Fourth Ave. in Seattle’s Central Business District, for $465 million. The seller in the transaction was undisclosed. The REIT is acquiring the 800,000-square-foot property through a joint venture with one of the participants in its recently announced co-investment program with Canada Pension Plan Investment Board (CPP Investments) and GIC. Boston Properties will own a 51 percent interest in the building. Safeco Plaza was developed in 1969 by the Howard S. Wright Construction Co. and features a two-story lobby, five-level subterranean parking garage, a large outdoor plaza and 15,000 square feet of ground-floor retail. The LEED Platinum-certified property offers views of the Seattle skyline, Puget Sound and Olympic Mountains and is located adjacent to stops for Seattle’s Link light rail and Metro bus lines. Safeco Plaza was 90 percent leased at the time of sale to tenants including Safeco Insurance, Bank of America, Corr Cronin LLP, Fox Rothschild, Helsell Fetterman and Interior Architects. Hines has managed the asset since 2016. Boston Properties is one of the largest publicly traded developers, owners and managers of Class A …

July 29, 2021

Loans Northeast Office Pennsylvania

Trez Capital Provides $22M Loan for Redevelopment of Metro Philadelphia Office Building

by Taylor Williams July 29, 2021

FORT WASHINGTON, PA. — Trez Capital has provided a $22 million loan for the redevelopment of a 367,681-square-foot office building in Fort Washington, a northern suburb of Philadelphia. The property was originally built in 1999 on a 28.3-acre site. The borrower, an entity doing business as Alliance HP Virginia Drive LLC, plans to modernize the building with a new entrance, dock doors and amenities. Brett Forman and Scott Mehlman of Trez Capital originated the debt.

July 29, 2021

Iowa Market Reports Midwest Midwest Market Reports Office

Des Moines Office Market Is on the Rebound

by Kristin Harlow July 29, 2021

By Chris Curran and Mark Mills, R&R Realty Advisors Would you rather earn more money or have a more flexible work/life balance? Before the pandemic, many employees gave the latter as their answer. But the amount of money employees claimed they would forego wasn’t exactly peanuts. According to a pre-pandemic study by career site Joblist, the average employee was willing to give up around $10,000 per year to have better work/life balance. Fast forward to the present day and employees continue to express this desire. The isolation felt by many when working from home has increased the blurriness of the line that separates work from life. In fact, a survey conducted by TELUS International found that isolated workers reported a nearly 80 percent increase in work-related stress and anxiety when working from home. Given these findings, perhaps it shouldn’t surprise anyone that three out of four office employees express a desire to return to in-person work. If there’s a silver lining to the unprecedented year we’ve been emerging from, it may be that employees and employers alike are coming to understand the value in providing a balance between work and personal time. And, when it comes to the office market …

July 29, 2021

Connecticut Development Northeast Office

Shawmut Tops Off 24,000 SF Office Project for HMTX Industries in Norwalk, Connecticut

by Taylor Williams July 29, 2021

NORWALK, CONN. — Shawmut Design & Construction has topped off the 24,000-square-foot office headquarters building for global luxury vinyl tile manufacturer HMTX Industries in Norwalk, located in the southern coastal part of the state. The facility will be situated on two acres and will include design studios and galleries. Construction of the four-story building began in June and is scheduled to be complete in 2022.

July 29, 2021

California Development Multifamily Office Retail Top Stories

Urban Catalyst Reveals Plans for $600M Icon/Echo Towers in Downtown San Jose

by Julia Sanders July 28, 2021

SAN JOSE, CALIF. — Urban Catalyst has revealed plans to build the Icon/Echo mixed-use project, which will include office, residential and retail components in downtown San Jose. The development will cost around $600 million to build, according to the Silicon Valley Business Journal. The construction timeline for the project has not been disclosed. The Icon/Echo towers will feature 300 apartment units and 420,000 square feet of Class A office space. The office tower portion of the project will be 282 feet tall, while the apartment complex will be 267 feet tall. The apartment units will sit above 8,500 square feet of ground-floor retail. The project’s two towers will include over 50,000 square feet of outdoor amenities, including rooftop gardens, as well as interior common areas. Additionally, the towers will have four levels of parking that will hold up to 1,134 cars. Located at 147 E Santa Clara St., Icon/Echo encompasses about two acres of land and is located close to City Hall and a future Bay Area Rapid Transit (BART) station. The Icon/Echo towers will be located half a mile from the San Jose Museum of Art and about 0.4 miles from San Jose State University. One of the sites …

July 28, 2021

Acquisitions New York Northeast Office

Boston Properties Enters into Agreement to Buy Manhattan Office Building for $300M

by Taylor Williams July 28, 2021

NEW YORK CITY — Boston Properties Inc. (NYSE: BXP) has entered into an agreement to acquire 360 Park Avenue South, a 450,000-square-foot office building in Midtown Manhattan, for $300 million. The 20-story building is currently fully leased to a single tenant that will vacate the property at the end of the year. Boston Properties will subsequently implement a capital improvement program. The company expects to close on the asset in December. The seller was not disclosed.

July 28, 2021

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