ST. LOUIS — NorthMarq has arranged a $3.5 million loan for the acquisition of Balmoral Plaza in St. Louis. The two-story property comprises 12,720 square feet of office space above 12,020 square feet of retail space. It is located at 443-465 N. New Ballas Road. Jeffrey Chaney of NorthMarq arranged the 10-year, fixed-rate loan on behalf of the borrower, Cape-Jackson SLB LP. A life insurance company provided the loan.
PITTSBURGH — The parent company of First National Bank (FNB) has signed a 160,000-square-foot office lease to open its corporate headquarters at the upcoming FNB Financial Center development in downtown Pittsburgh. The development will feature a 24-story tower with 387,000 square feet of Class A office space, 20,000 square feet of retail space and a two-story parking structure. The FNB headquarters will anchor the tower and its technology branch will occupy 2,000 square feet of retail space. The tower will be situated on the site of the former Civic Arena, home of the Pittsburgh Penguins hockey team, which will comprise multiple structures and over 1 million square feet of office, residential, retail and green space. Buccini/Pollin Group and the Penguins are co-developers of the mixed-use development, which is slated for completion in 2022.
HOUSTON — Subsidiaries of Hartman Income REIT have acquired three office buildings totaling 222,043 square feet in Houston’s Energy Corridor area. Timberway II is a 130,828-square-foot building that was 64.2 percent occupied at the time of sale; One Park Ten Place is a 34,089-square-foot asset that was 34.6 percent occupied at the time of sale; and Two Park Ten Place is a 57,125-square-foot property that was 89.1 percent occupied at the time of sale. All three properties were built between 1979 and 1983 and have subsequently been renovated. The seller(s) was not disclosed.
PLANO, TEXAS — CIT Group Inc., a publicly traded national bank, has provided a $36.2 million acquisition loan for Park Center, a 236,000-square-foot office building in Plano. The five-story, Class A building houses tenants in the sports marketing, insurance and title industries. The borrower was an affiliate of New York-based Innovatus Capital Partners. Park Center was 97 percent leased at the time of sale.
STAMFORD, CONN. — British alcoholic beverage provider Diageo has signed a 40,000-square-foot office lease in Stamford. Diageo produces more than 200 alcoholic beverage brands, including Crown Royal whiskey, Smirnoff vodka, Captain Morgan rum, Bailey’s Irish liqueur, Don Julio tequila and Guinness stout. The new office, located at 200 Elm St., will house research and development teams as well as finance, human resources and supply services. Building and Land Technology is the landlord of the property. Earlier this year, the company signed an 87,000-square-foot lease for its new North American corporate office at 3 World Trade Center in Manhattan. Diageo plans to take occupancy of both spaces in early 2020.
CHICAGO — Skender has begun interior construction of the new 85,000-square-foot headquarters for AbelsonTaylor in Chicago’s Old Post Office building. AbelsonTaylor, a health and wellness advertising agency, is relocating from its current offices at 33 W. Monroe St. The new space will accommodate private offices, workstations, an open collaboration area and break room. Skender is working in collaboration with HED, Syska Hennessy Group and Cushman & Wakefield to complete the project by March 2020. Skender is the contractor for nearly 500,000 square feet of office space at the Old Post Office project, including buildouts for Walgreens and PepsiCo. Owner and developer 601W Cos. is redeveloping the 2.8 million-square-foot former post office in an $800 million project.
SAN FRANCISCO — ING Capital LLC, an American subsidiary of ING Groep N.V. (NYSE: ING), has provided a $402 million loan for the acquisition of Market Center, a 753,000-square-foot office complex in San Francisco. Market Center is a two-building, Class A asset located in San Francisco’s Financial District. The 22-story building at 555 Market St. was completed in 1964 and the 40-story building at 575 Market St. was completed in 1975. The complex served as the headquarters of Chevron Corp. until 2001, when the energy giant relocated to San Ramon, Calif. The borrower was a joint venture led by Paramount Group Inc. (NYSE: PGRE), a New York City-based development and investment firm that acquired an interest of about 67 percent in the property. The joint venture partners were not disclosed, but the total price of the sale was $722 million. The acquisition loan was structured with a fixed interest rate and a five-year term with two one-year extension options. Paramount also used proceeds from the sale of Liberty Place, a 172,000-square-foot office building in Washington, D.C., to help pay for the acquisition of Market Center. Paramount’s $153.5 million sale of Liberty Place closed in late September. The seller of the …
With the recent influx of young talent, combined with the area’s thriving economy and renowned vibrant culture, the Greater New Orleans region is poised for growth. Although the office market sector is slow to show any significant gains, this signifies a potential undervalued opportunity for users. The metro area has nearly 20 million square feet of office space, including over 11 million square feet of Class A space with a published occupancy rate exceeding 87 percent. The predominant trend is a rightsizing of the market, resulting in more downsizing than growth. On a macro level, the oil and gas industry is phasing out, which has historically been a prominent space user. The conversion of office space into alternate uses also continues, as well as a reduction in company footprints. The outlying suburban office market has seen the most growth, with East Metairie being one of the strongest submarkets in both occupancy and rental rates. With less product in the area, supply and demand are closer to equilibrium. New Orleans’ central business district (CBD) and downtown office submarkets are coasting along. Class A occupancy rates are slightly down from last year, but rents have inched up to high-teens and low-20s. The …
PARAMUS, N.J. — NAI James Hanson has negotiated a 5,374-square-foot office lease for Edge Physical Therapy & Sports Medicine LLC in Paramus, located approximately 20 miles northwest of New York City. The 168,000-square-foot office building offers access to Garden State Parkway, the New Jersey Turnpike and two regional shopping centers. Darren Lizzack and Randy Horning of NAI James Hanson represented the tenant in the lease negotiations. Curtis Foster and Jerry Shifrin of Cushman & Wakefield represented the landlord, Stanford Atrium Corp.
HUNTERSVILLE, N.C. — Atlanta-based OA Development has sold a five-building office portfolio in Huntersville to Arizona-based healthcare REIT, Healthcare Trust of America Inc., for $81.5 million. The nearly 400,000-square foot office portfolio is located within The Park Huntersville, a mixed-use development situated 12 miles north of Charlotte. JLL’s Ryan Clutter represented OA Development in the sale. OA Development purchased the campus two years ago for $62.5 million. Located adjacent to Novant Hospital, the portfolio was 90.4 percent occupied at the time of sale to tenants including Ensemble Health Partners, Black & Decker Corp. and Covia Holdings Corp. The office portfolio includes a four-story, 123,000-square-foot building; two three-story buildings at 101,500 and 45,000 square feet; and two two-story buildings at 68,000 and 59,000 square feet. The five buildings were developed between 1990 and 2001. The Park Huntersville overall spans 2.6 million square feet.
