CHICAGO — iManage, a global provider of work management production solutions, has signed an 85,000-square-foot office lease at 71 South Wacker, a 48-story office tower in downtown Chicago. Irvine Co. owns the property. iManage will relocate from 540 W. Madison St. and will begin occupying its new space in early 2021. Frank Franzese, Steven Bauer and Aaron Schuster of Cushman & Wakefield represented iManage, while Brad Despot, Mark Georgas and Annie Nicolau of JLL represented Irvine.
DALLAS — Piedmont Office Realty Trust Inc. (NYSE: PDM) is under contract to acquire Galleria Office Towers in Dallas for $400 million. Situated at the corner of the Dallas North Tollway and the LBJ Freeway in the Far North Dallas neighborhood, the three office buildings total 1.5 million square feet and were built between 1982 and 1991. The properties are also attached to Galleria Dallas, a shopping destination with over 140 stores and 40 restaurants, as well as the 432-room Westin Galleria Hotel. The seller, CBRE Global Investors, spent more than $20 million in capital improvements at the properties. Amenities include lounges, conference centers, a fitness center and rooftop terrace. Piedmont, an Atlanta-based REIT, listed the transaction in a Securities and Exchange Commission filing but did not disclose the property name. However, multiple local media reports identified the acquired asset. The transaction is expected to close this quarter. JLL marketed the Galleria portfolio for sale. It is nearly 90 percent leased to tenants such as Amazon, Ryan LLC, Ansira Partners, Kimley-Horn and Hospital Corp. of America. Piedmont owns several office buildings in the Dallas market, including Park Place on Turtle Creek and One Lincoln Park. Other markets the firm targets …
AUSTIN, TEXAS — CBRE has arranged $72 million in debt and equity capital for the development of 701 Rio, a 120,000-square-foot speculative office project in downtown Austin. Mike Landon and Griffin Papaila of CBRE arranged a construction loan through Bank of Texas and BancFirst and delivered Barings as an equity partner to the borrower, B&Z Investments LLC. B&Z and Hensel Phelps, the co-developer and general contractor, broke ground on the project in January and expect to complete it in June 2021. BGK Architects designed the project, which will include 12,000 square feet of retail space and five stories of underground parking.
PLANO, TEXAS — Reata Pharmaceuticals has signed a 121,903-square-foot office sublease at 5320 Legacy Drive in Plano. Mike Wyatt, Maureen Kelly Cooper, Robbie Baty and Travis Boothe of Cushman & Wakefield represented the sublandlord, Denbury Onshore LLC, in the lease negotiations. Jeff Ellerman and John Ellerman of CBRE represented the subtenant.
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.
