— By Leah Masson, senior director, Cushman & Wakefield — The real estate landscape in the Puget Sound region is shaped by a dynamic contrast between the Eastside and Downtown Seattle. The Eastside continues to thrive, particularly with its robust tech activity. Major developments, such as the Eight, Skanska’s 540,000-square-foot project, is nearing full occupancy, underscoring the area’s strong demand. OpenAI is actively seeking space on the Eastside, with expectations of more artificial intelligence groups to follow. It’s worth noting that the Eastside is not plagued by the safety issues that have been a concern for Downtown Seattle. The anticipated 2025 opening of the light rail is set to drive even more growth in the area. Downtown Seattle is also experiencing an uptick in leasing activity, with active tenants expanding in terms of both square footage and lease term lengths. Since 2021, professional services groups, such as law and engineering firms, have been the primary drivers of leasing, but there is now a welcome return of tech companies to the Seattle market. New AI-focused tenants are beginning to emerge, moving out of coworking spaces and seeking permanent office locations in the city. However, Downtown Seattle continues to face significant challenges, …
MINNEAPOLIS — Kraus-Anderson (KA) has completed the office build-out for Värde Partners at North Loop Green in Minneapolis. The new office tower is located at 350 N. 5th St. Värde Partners is a global alternative investment firm specializing in credit and credit-related assets. Designed by ESG Architecture & Design, the 23,800-square-foot office features a spacious lobby and reception area. In addition to offices, there are conference rooms, versatile workspaces, a café and wellness rooms. KA worked on the office build-out with JLL Project & Development Services, the construction manager. In May, KA completed construction of North Loop Green, which comprises the 365,000-square-foot office building as well as a 449-unit apartment tower. The project team for North Loop Green included developer Hines and ESG Architecture & Design.
SACRAMENTO, CALIF. — Manulife US REIT has completed the disposition of 400 Capitol Mall, a 29-story Class A office tower in downtown Sacramento. PacWest Equities, an affiliate of Buzz Oates, acquired the asset for $117 million. The 501,308-square-foot property has maintained a nearly 90 percent historical occupancy over the past 25 years. Tenants include Wells Fargo, Morgan Stanley, PWC, Deloitte and Orrick. The tower features a five-story, 1,094-space parking garage, valet parking, car detailing, a fitness center with locker rooms and saunas, a private outdoor pool, conference center facility and a high-end ground-floor restaurant and café. Adam Lasoff, Rob Hielscher, Erik Hanson and Caroline Reynolds of JLL Capital Markets Investment Sales and Advisory team represented the seller in the deal.
CHICAGO — Glenstar has recapitalized Presidents Plaza in Chicago with a private investor. The two-tower office complex is situated near O’Hare International Airport at 8600-8700 W. Bryn Mawr Ave. In addition to purchasing the 831,442-square-foot complex for $62 million, Glenstar and its equity partner have set aside capital to fund tenant improvements. Additionally, Glenstar has allocated nearly $16 million to build spec suites along with upgrading amenities and common areas. Initial plans call for a golf simulator and common area improvements to round out the amenities added during the property’s recent $34 million renovation. Upgrades included a redevelopment of the three-story atrium lobby, three-level health club, fully renovated lounge, café with full seating and 6,300-square-foot conference center. Dan Deuter, Tom Sitz and Cody Hundertmark of Cushman & Wakefield represented the seller in the sales transaction, which closed Oct. 22. Glenstar has served as the property and asset manager of Presidents Plaza since 2006.
DETROIT — PACE Loan Group has provided a $3.3 million C-PACE loan for the renovation of the Samaritan Center in Detroit. The four-building business complex features more than 525,000 square feet. The loan covers 60 percent of the energy-efficiency project’s $5.5 million renovation, which will update the main building and is expected to reduce annual repair expenses and utility costs. Redeveloped from a former hospital, Samaritan Center was founded to help spur redevelopment on the east side of Detroit and is owned by SER Metro-Detroit. At least 65 percent of the space is leased to nonprofits, which aim to promote education and physical and mental well-being in the community. Currently, the property is used for medical services, senior living, education, social services and office space. The C-PACE proceeds will be used to finance qualifying energy-efficiency improvements, including LED lighting, HVAC, chillers and boilers, upgraded building control systems and new elevators. These improvements are expected to save $328,370 annually in energy costs and reduce annual maintenance costs by $250,000. SER Metro-Detroit also received a $2 million grant from the State of Michigan to update the building façade, replace large sections of the roof and rebuild air handlers.
MINNEAPOLIS — Gamer Packaging has signed a 20,192-square-foot office lease at Fifth Street Towers in Minneapolis. The full-service packaging company is moving its headquarters to the entire 19th floor of 100 S. Fifth St., the companion tower to 150 S. Fifth St. Reed Christianson and Trinette Wacker of Transwestern Real Estate Services handle leasing for the 1 million-square-foot office complex, which features amenities such as Sculpt Fitness, Connect Lounge and Sphere Bar + Restaurant. Gamer Packaging is currently designing its new headquarters and expects to take occupancy in the second half of 2026. Tad Jellison, John Lorence and Blake Hastings of CBRE represented Gamer Packaging.
NORWALK, CONN. — Norseland Inc., a subsidiary of Norway’s largest dairy cooperative, has signed an 11,353-square-foot office lease in the coastal Connecticut city of Norwalk. The company is relocating its U.S. headquarters from nearby Darien to Merritt 7 Corporate Park. John Hannigan and James Riffice of locally based brokerage firm Choyce Peterson represented the tenant in the lease negotiations. Betsy Buckley, Ed Tonnessen and Gil Ohls of JLL, along with internal agent JoAnn McGrath, represented the landlord, a partnership between Clarion Partners and Marcus Partners.
SAN DIEGO — Ambient Communities, a San Diego-based real estate company, has acquired 530 B Street, a 24-story office tower in downtown San Diego’s B Street corridor, from an undisclosed seller for $27.5 million, or $110 per square foot. Completed in 1966, the 250,000-square-foot tower was known as the Union Bank building until U.S. Bank acquired the bank in 2022. Matt Carlson, Hunter Rowe, Camille Doan, Matt Pourcho and Anthony DeLorenzo of CBRE represented the seller, while Mickey Morera of Kidder Mathews represented the buyer in the transaction.
AUSTIN, TEXAS — FUSE Workspace, a Texas-based provider of flexible workspace solutions, has opened a 33,000-square-foot space at 2105 E. MLK Blvd. in East Austin. The space is the company’s fourth in Austin and offers an array of private offices, dedicated individual desks, enterprise suites and meeting rooms. CB Capital owns the building. Work on the project began in April.
NEW YORK CITY — Blue Owl Capital has signed a 238,673-square-foot office lease extension and expansion at 375 Park Avenue in Midtown Manhattan. The global alternative asset manager first committed to 375 Park Avenue, which is known locally as The Seagram Building, in 2022 with a 137,600-square-foot lease across floors two through five. In 2023, Blue Owl added 31,597 square feet to its footprint via occupancy of the entire sixth floor. The latest lease expansion totals 70,076 square feet across floors 16 through 19. Mark Weiss of Cushman & Wakefield represented the tenant in the lease negotiations. A.J. Camhi and Paul Milunec represented the landlord, RFR Realty, on an internal basis.