NEW YORK CITY — Investment firm Oak Hill Advisors has expanded its prelease to 69,802-square-feet in Midtown Manhattan. The firm originally preleased 45,954 square feet at One Vanderbilt Avenue, an approximately 1.7 million-square foot office tower slated for completion later this year. The firm has leased an additional 23,848 square feet and will now occupy space across the 15th and 16th floors. Lance Korman, Brian Waterman and Jared Horowitz of Newmark Knight Frank represented Oak Hill Advisors in the lease negotiations. Robert Alexander, Ryan Alexander, Emily Jones and Alex D’Amario of CBRE represented the landlord, SL Green.
PHOENIX — Velocis has received a $33.8 million loan for the refinancing of Park One, a Class A office property in Phoenix’s Camelback Corridor. Dana Summer, Bruce Francis, Bob Ybarra, Shaun Moothart, Doug Birrell and Jim Korinek of CBRE secured the financing through Alliance Bank of Arizona for the borrower. Located at 2111, 2121 and 2141 E. Highland Ave., Park One is a three-building campus offering a total of 217,433 square feet of office space. The campus comprises a two-story building, four-story building and a freestanding restaurant. At the time of financing, the property was 92 percent leased. Park One features remodeled common areas and amenity spaces, including lobbies, corridors, elevator cabs, on-site café, landscaping and outdoor seating areas. The property is within walking distance to a variety of restaurant and shopping options, including Biltmore Fashion Park.
AKRON, OHIO — Burns & McDonnell has signed a lease to occupy the entire third floor of a new speculative office building within White Pond Crossing in Akron. The engineering, architecture and construction firm will occupy 14,940 square feet upon completion of the 45,000-square-foot building this summer. White Pond Crossing currently consists of six buildings totaling 67,900 square feet. Stacy Tramonte of NAI Pleasant Valley brokered the lease transaction. Tramonte handles all leasing for the new spec building.
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Walker & Dunlop: Rent, Lenders, Tech in the Midst of Coronavirus
In recent weeks, the ability of commercial real estate owners to access debt and equity has come into question as the novel coronavirus wreaks havoc on the economy. While some deals in the pipeline are still getting done, the debt markets took a pause as the pandemic took hold. Debt markets were waiting for clarity on how various sectors would react, according to Mark Strauss, managing director of capital markets, and Rob Quarton, director of capital markets, with Walker & Dunlop’s Irvine, Calif., office. The two recently spoke with REBusinessOnline via Zoom about the robustness of certain asset types, market stability, debt pricing and adoption of tech-heavy creativity in the wake of COVID-19 and its effects on commercial real estate nationwide. Commercial Real Estate Debt & Coronavirus Strauss and Quarton primarily work with institutional capital sources that provide capitalization for commercial real estate developers and owners. As such, they have a broad view of all debt markets and their willingness to fund. Debt funds are one of the most affected areas of the financial markets. “The way that debt funds finance their position behind the scenes — either using collateralized loan obligations (CLOs), bank warehouse lines or repo facilities — …
ELLICOTT CITY, MD. — KLNB has arranged the $9.4 million sale of North Ridge Professional Center, a 38,894-square-foot medical office building in Ellicott City. The building was 97 percent leased at the time of sale to anchor Ellicott City Ambulatory Surgery Center, Howard County Government, Seton Medical Group (a division of St. Agnes Healthcare) and Infectious Disease Associates. The property is situated at 2850 N. Ridge Road, 15 miles west of downtown Baltimore. Don Schline, Craig Morrell and Brad Berzins of KLNB represented the seller, Foulger-Pratt, in the transaction. The buyer was not disclosed.
BETHLEHEM, PA. — Colliers International has brokered the $3 million sale of a 33,000-square-foot office building located at 257 Brodhead Road in Bethlehem, an eastern suburb of Allentown. The seller, First Commonwealth Federal Credit Union (FCFCU), previously used the building as its corporate headquarters and will move to a new space within the Trexler Business Center development currently under construction in Trexlertown, Pennsylvania. An undisclosed new tenant has already been procured. Derek Zerfass of Colliers represented FCFCU in the transaction. Ryan Dietrick and Kelly Berfield, also of Colliers, represented the buyer, Brodhead Road Holdings LLC.
RED BANK, N.J. — First National Realty Partners (FNRP) has acquired The Coastal Building, a 29,178-square-foot Class A office building in Red Bank, a southern suburb of New York City. Located at 151 Bodman Place on the Navesink River, the property offers convenient access to State Highway 35 and the Garden State Parkway. At the time of sale, tenants included Conklin Office Services LLC, Hudson Canyon Investment Counselors and The Pat Menna Law Firm. The building was constructed in 1982 and underwent lobby renovations in 2013. First National acquired the building in an off-market transaction and plans to improve the property with targeted upgrades focused on green initiatives and technology. The sales price was undisclosed.
CHICAGO — Effective May 4, Gogo (Nasdaq: GOGO) will furlough approximately 60 percent of its workforce and reduce compensation for most other employees as part of a broad-based cost reduction plan due to the impact of COVID-19. Chicago-based Gogo is an in-flight internet company. The furloughs will impact more than 600 employees. The time and duration of the furloughs will vary based on workload. Salary reductions will begin at 30 percent for the CEO, 20 percent for the executive leadership team and feather down from there. Members of Gogo’s board of directors has agreed to reduce their compensation by 30 percent. Certain types of employees, such as hourly workers, will not have their compensation reduced. Approximately 60 percent of Gogo’s revenue comes from its two commercial airline segments. Passenger traffic on commercial airlines using Gogo’s service has declined 95 percent this month compared with the prior year. The remaining 40 percent of Gogo’s revenue comes from its business aviation segment, which has experienced a sharp decrease in flight activity. Gogo has also applied for an $81 million grant and a $150 million loan under the CARES Act. If Gogo receives government assistance, it will modify the personnel actions. Previous measures …
NEW YORK CITY — Temporary and virtual office space provider FirmVO has signed an 11,000-square-foot lease in the Tribeca neighborhood of Manhattan. The space spans the entire seventh floor of 305 Broadway, a 14-story office building, and includes large common areas, five conference rooms, a coworking area and 30 private offices. The lease term is five years with an additional five-year renewal option. FirmVO offers office solutions to law firms and practitioners. Reade Broadway & Associates is the landlord. Both companies were represented internally.
TAMPA, FLA. — Skanska USA will construct a three-story, 120,000-square-foot office and research lab for the University of South Florida (USF) in Tampa. The $42 million project is situated within USF’s Research Park, which is located at 3802 Spectrum Blvd. on the southern end of campus and 10 miles north of downtown Tampa. The building will also offer ground-floor retail and restaurant options. Completion is slated for fall 2021. Gensler designed the building, which will expand the park’s capacity by 30 percent.