Office

Songy Highroads Acquires 151,722 SF Office Building in Metro Houston

by Taylor Williams October 23, 2019

SUGAR LAND, TEXAS — Songy Highroads LLC, an Atlanta-based investment and development firm, has acquired Sugar Creek Place I, a 151,722-square-foot office building located in the southwestern Houston suburb of Sugar Land. The six-story, Class A building was 86 percent leased at the time of sale. Sugar Creek Place I recently received more than $1.7 million in capital improvements, including the addition of a new conference facility, tenant lounge and common area, as well as an upgraded lobby and corridors. Marty Hogan and Dan Miller of JLL represented the seller, HighBrook Investors, in the transaction, while Ed Coco, Matt Casey and Michael Johnson of JLL arranged acquisition financing on behalf of Songy Highroads. Transwestern Commercial Services handles leasing of the property, which was 86 percent occupied at the time of sale.

October 23, 2019

Leasing Activity Office Texas

Architecture Firm Signs 34,000 SF Office Lease Extension in Downtown Dallas

by Taylor Williams October 23, 2019

DALLAS — Global architecture and engineering firm Page has signed a 34,000-square-foot office lease extension at the historic Mercantile National Bank Building in downtown Dallas. The firm has operated out of the property, located at 1800 Main St., since 2011 and will add an additional seven years to its lease term. Matt Heidelbaugh and Billy Gannon of Cushman & Wakefield represented Page in the lease negotiations.

October 23, 2019

Acquisitions New York Northeast Office

Citigroup Agrees to Purchase 158,000 SF Office Building in Getzville, New York

by Alex Patton October 23, 2019

GETZVILLE, N.Y. — Citigroup has agreed to purchase 580 CrossPoint Parkway, a 158,000-square-foot office building in the CrossPoint Business Park, as well as approximately nine acres of adjacent land in the northern Buffalo suburb of Getzville. With this transaction, Citigroup will also extend its lease at the conjoined 107,000-square-foot office building located at 540 CrossPoint Parkway. Uniland Development Co. was the seller of 580 CrossPoint and is also the landlord of 540 Crosspoint. The Buffalo News reports the sale, which is expected to close in November, fetched a sales price of $52 million.

October 23, 2019

Leasing Activity Northeast Office Pennsylvania

CBRE Negotiates 6,724 SF Office Lease at Spring House Innovation Park Near Philadelphia

by Alex Patton October 23, 2019

LOWER GWYNEDD, PA. — CBRE has negotiated a 6,724-square-foot office lease for cancer screening company Anpac Bio at Spring House Innovation Park in Lower Gwynedd, a northern suburb of Philadelphia. Developed and owned by MRA Group, the 600,000-square-foot property offers lab, research and development facilities, as well as Class A office and coworking space. Anpac Bio is expected to move into the space in March 2020. Toni Rossi of CBRE represented the tenant in the lease negotiations.

October 23, 2019

Acquisitions California Healthcare Office Western

Meridian Buys Office Building in Orange County for $20.3M, Plans Medical Office Conversion

by Amy Works October 23, 2019

SANTA ANA, CALIF. — San Ramon, Calif.-based Meridian has acquired a two-story office building, located at 3601 W. Sunflower Ave. in Santa Ana, for $20.3 million. The buyer plans to invest an additional $5 million in building improvements to convert the building into a medical office space. Situated on 4.8 acres, the 53,500-square-foot property was originally constructed in 2000 as a special-use building for a culinary and arts school. The school went bankrupt earlier this year, and the building was vacant at the time of sale. During escrow, Meridian secured its first tenant, a large healthcare provider, for roughly half of the building on a long-term lease. The buyer will market the second-floor space, approximately 26,000 square feet, to medical office tenants. Jon Sweeney of Long Beach, Calif.-based CXI Realty and George Thomson of Newmark Knight Frank’s Irvine, Calif., office represented the seller, a local private investor, in the transaction. John Scruggs and Justin Hodgdon of Newmark Knight Frank’s Irvine office represented the buyer. Scruggs and Thomson will manage the continued leasing of the building.

October 23, 2019

Loans New York Northeast Office Top Stories

SoftBank to Buy Majority Stake in WeWork with $8B Investment

by Kristin Harlow October 23, 2019

NEW YORK CITY — The We Co., parent company of coworking office space operator WeWork, and SoftBank Group Corp. have reached an agreement under which SoftBank will provide $5 billion in new financing and a tender offer of up to $3 billion for existing WeWork shareholders. SoftBank, a Japanese technology conglomerate, will also accelerate an existing commitment to fund $1.5 billion. WeWork chose the rescue offer from SoftBank over a competing proposal from JPMorgan Chase & Co. The announcement comes after well-documented concerns about the coworking giant’s cash flow and leadership. The company’s valuation plunged after it scrapped its initial public offering. WeWork founder Adam Neumann was forced out of his chief executive position after pushback from prospective investors. “It is not unusual for the world’s leading technology disruptors to experience growth challenges as the one WeWork just faced,” says Masayoshi Son, chairman and CEO of SoftBank. “Since the vision remains unchanged, SoftBank has decided to double down on the company by providing a significant capital infusion and operational support.” After closing and following the tender offer, SoftBank’s economic ownership stake in WeWork will be approximately 80 percent, up from about one-third currently. Since SoftBank will not hold a majority …

October 23, 2019

Market Reports New Jersey Northeast Northeast Market Reports Office

New Jersey Office Market in Good Shape Heading into Final Quarter of 2019

by Taylor Williams October 23, 2019

Employment growth in New Jersey continues to trend higher. Since the low point of the last recession in 2010, the state’s private sector has seen almost 409,000 new jobs added (through July). Of the office-using industries, professional and business services have shown healthy annual job growth — up 13,900 jobs — while financial services jobs have recorded declines over the past year. Meanwhile, the state’s unemployment rate continued to tick lower to 3.3 percent (as of July), the lowest in its recorded history. Within this context, the fundamentals of the New Jersey office market remain healthy as we enter the final quarter of 2019, with absorption totals remaining in the black, vacancies sinking lower and asking rents trending upward. Regional Discrepancies Northern New Jersey’s vacancy rate had dropped to 18.3 percent by the middle of 2019, the lowest point since the end of 2012, while central New Jersey checked in at 15.5 percent, marking four consecutive quarterly decreases. Space has tightened in some key submarkets, making landlords increasingly bullish. As a result, asking rents in Northern New Jersey have risen to $31.62 per square foot — an all-time high and a jump of 17.8 percent over the last four years. …

October 23, 2019

Georgia Leasing Activity Office Southeast

Chick-fil-A Signs 40,000 SF Office Lease in Atlanta’s Old Fourth Ward

by Alex Tostado October 22, 2019

ATLANTA — Chick-fil-A has signed an office lease to occupy the sixth floor of 725 Ponce, a new mixed-use development located on Atlanta BeltLine’s Eastside Trail adjacent to Ponce City Market. The 40,000-square-foot space will house 250 corporate employees and will be an extension of the company’s support center south of Atlanta. Chick-fil-A is expected to move into the new space in summer 2020 when the buildout is complete. A 60,000-square-foot Kroger recently opened at the base of 725 Ponce. Jon Mayeske and Janelle Beasley of Cushman & Wakefield represented the tenant in the lease negotiations. Aileen Almassy, also of Cushman & Wakefield, represented the landlord, New City Properties.

October 22, 2019

Leasing Activity New York Northeast Office

Avison Young Negotiates 45,700 SF in Office Leases at 1140 Avenue of the Americas in Manhattan

by Alex Patton October 22, 2019

NEW YORK CITY — Avison Young has negotiated the leasing of over 45,700 square feet of office space at 1140 Avenue of the Americas in Manhattan. Vatic Labs, a trading technology firm, signed a 12,750-square-foot new lease for its New York City headquarters. Real estate investment firm Almanac Realty Investors signed a 12,750-square-foot office lease extension and expansion, and PSL Group, a pharmaceutical research, medical education and publishing firm, signed a 12,750-square-foot office lease extension. Grace Beauty, a marketer, investor and distributor of beauty products, signed a 7,466-square-foot office lease renewal. Todd Korren, Brooks Hauf and Peter Johnson of Avison Young represented the landlord, New York City-based REIT, in each of the four lease negotiations.

October 22, 2019

Leasing Activity New York Northeast Office

Digital Reasoning Signs 5,819 Office Lease at 11 Times Square in Manhattan

by Alex Patton October 22, 2019

NEW YORK CITY — Cognitive computing services provider Digital Reasoning has signed a 5,819-square-foot office lease in Manhattan. The space is located on the 31st floor of 11 Times Square, a 1.1 million-square-foot commercial tower. The company is moving its New York City office from 853 Broadway and is expected to move into its new space by mid-November. Kyle Wainwright and Paul Ippolito of Newmark Knight Frank represented Digital Reasoning in the lease negotiations. JLL represented the landlord, SJP Properties, along with Zach Freeman on an internal basis. SJP’s project solutions team is constructing a build-to-suit boardroom for the tenant.

October 22, 2019

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