GLEN RIDGE, N.J. — The Avison Young New Jersey project management group has completed the ground-up construction of a 45,000-square-foot, Class A medical office building in Glen Ridge, an eastern suburb of New York City. The facility features adaptable medical office units for physicians and specialists and is situated adjacent to Mountainside Medical Center. Existing buildings on the site were demolished as part of the project. NK Architects designed the facility. One Bay Urban Renewal LLC, an affiliate of The Hampshire Cos. LLC., owns the property.
FRAMINGHAM, MASS. — JLL has secured a $43.1 million acquisition loan for a two-property office portfolio totaling 292,014 square feet in Framingham, a western suburb of Boston. The properties, a 166,101-square-foot building situated at 492 Old Connecticut Path and a 125,913-square-foot building situated 161 Worcester Road, were 90 percent leased to 32 tenants at the time of the loan closing. Cambridge Savings Bank provided the fixed rate, nonrecourse loan to the borrower, a partnership between Campanelli and TriGate Capital. The borrower plans to invest $2.4 million into capital improvements to the portfolio. Greg LaBine and Martha Nay of JLL arranged the loan.
It’s no secret that Austin has exploded with jobs and people over the last 10 years, and evidence of the growth has perhaps been most visible in the asking rents for office space. Rental rates in Austin’s most sought-after neighborhoods have essentially doubled since 2010, when major tech firms really began eyeing the state capital for its pro-business climate and supply of educated workers, as well as its high quality of living. Today, we see full-service office rates well above $50 per square foot in the hottest submarkets. According to our data, the average full-service rent in downtown Austin typically ranges from $65 to $69 per square foot. Submarkets like The Domain and East Austin command rates that typically average about $55 and $50 per square foot, respectively, on a full-service basis. These rates include operating expenses which can be between $15 to $25 per foot depending on location, mainly due to property tax increases found in these higher density areas of Austin. While these rates appear to be a smaller issue for the tech giants that drive significant growth among office-using industries in Austin, the rapid rate of appreciation is unquestionably pricing out some users that also need to …
DALLAS — Locally based investment firm Encore Enterprises has sold Two Forest Plaza, a 196,215-square-foot office building located at 12201 Merit Drive in North Dallas. The 11-story, Class A building was built in 1981 and renovated in 2014. Amenities include a six-story parking garage, conference room, fitness center and a café. Tenants include New York Life Insurance Co. and French bakery La Madeleine, which operates its headquarters from the building. Creighton Stark and Chris Boyd of Colliers International represented Encore Enterprises in the transaction. The buyer was a partnership between OrbVest U.S. Inc. and Richmond Honan Lifehope.
PHILADELPHIA — CBRE has brokered the $61.2 million sale of the 175,000-square-foot Axalta Global Innovation Center office building at the Philadelphia Navy Yard. Situated at 1050 Constitution Ave., the single-tenant property was completed in 2017 and serves as a research and development facility for Axalta Coating Systems, a manufacturer of vehicle coatings. Robert Fahey, Jerry Kranzel, Erin Hannan and Jack Corcoran of CBRE represented the seller, Liberty Property Trust, in the transaction. Nick Harris and Steven Doherty of CBRE secured acquisition financing and represented the buyer, Apex Capital Investments. Apex is a U.S.-based subsidiary of Kuwait-based Dimah Capital.
PARSIPPANY, N.J. — JLL has arranged a $31.1 million bridge loan for the acquisition of 5 Wood Hollow Road, a 330,631-square-foot office building in Parsippany, an eastern suburb of New York City. Prime Finance provided the three-year, floating-rate loan, which has two one-year extension options. The borrower, PAG Investments, will use a portion of the proceeds to fund future capital expenditures and leasing advances. Michael Klein and Andrew Zilenziger of JLL secured the loan.
NEW YORK CITY — Transwestern has negotiated a 25,000-square-foot office lease for nonprofit childcare organization Sheltering Arms in Manhattan. The space is situated on a single floor of 25 Broadway, a 22-story, Class A office property also known as the Cunard Building. Other tenants include Relay Graduate School of Education, Teach for America and the American Thoracic Society. Lindsay Ornstein, Stephen Powers, Thomas Hines and Jake Cinti of Transwestern represented Sheltering Arms in the lease negotiations. Bruce Surry, Richard Levine and Gary Kamenetsky of CBRE represented the landlord, The Wolfson Group.
SAN FRANCISCO — Lincoln Property Co., led by Lincoln’s LPC West team in San Francisco, has partnered with affiliates of the Goldman Sachs Merchant Banking Division to purchase 1045 Sansome Street, a four-story creative office building in San Francisco’s North Waterfront/Jackson Square neighborhood. Constructed in 1926, the nearly 90,000-square-foot building was originally home to a printing press before its conversion to creative office space. The property has undergone several improvements, including high ceilings on the ground level, a unique sawtooth glass roof, open floor plans, polished concrete floors and large windows throughout. At the time of sale, the building was 95 percent leased to a diverse mix of tenants in a variety of fields, including technology, architecture, nonprofit, business and media. Terms of the transaction were not released.
BOTHELL, WASH. — CBRE Capital Markets’ Debt & Structured Finance group has secured $38 million in financing for Canyon Park East, a business campus in Bothell. CBRE arranged the financing for Kennedy Wilson Fund VI, which purchased the property in December 2019 for $54.6 million. The $38.6 million loan closed on Jan. 30 with financing from an East Coast-based bank. Brad Zampa, Mike Walker and Megan Woodring of CBRE arranged the six-year, non-recourse, floating-rate financing with full-term interest-only payments. The loan will finance a portion of the acquisition and provide funding for future capital expenditures and leasing costs. Tom Pehl and Lou Senini with CBRE Capital Markets in Seattle represented the undisclosed seller in the acquisition deal. Situated on 16.5 acres, Canyon Park East comprises five office, R&D and warehouse buildings offering a total of 269,369 square feet of rentable space. At the time of financing, the property was 83 percent occupied.
DENVER — H.I.G. Realty Partners, an affiliate of H.I.G. Capital, has funded a $33.1 million loan for the acquisition of an industrial/flex office portfolio located in Denver. The borrower is CW Capital Partners. The three-building portfolio features 264,000 square feet of industrial and flex office space. At the time of acquisition, the portfolio was 80 percent occupied by a diverse group of tenants. The floating-rate, five-year loan allows for future advances for the lease-up of the portfolio over time.