NEW HAVEN, CONN. — Connecticut Conference of Municipalities (CCM) has signed a 30,000-square-foot lease at 545 Long Wharf Drive in New Haven. CCM, an organization of municipal leaders, will relocate its corporate offices from 900 Chapel St. to 545 Long Wharf Drive. O,R&L Commercial represented CCM in the transaction. The landlord, 545 Long Wharf Holdings, was represented by David Hansen of CBRE New England.
AUSTIN, TEXAS — HFF has negotiated the sale of 3208 Red River Street, a 20,762-square-foot office building in Austin. Walter Saad, Cathy Nabours and Drew Fuller of HFF represented the seller, San Francisco-based Drawbridge Realty, which acquired the property in 2013 and performed a complete redevelopment. Avison Young represented the buyer, an undisclosed private real estate trust. Tenants at the property include Xeris Pharmaceutical and YMCA.
CHICAGO — AbelsonTaylor, a health and wellness advertising agency, has signed a lease to occupy nearly 85,000 square feet at the Old Post Office Building in Chicago. The firm plans to move all its operations to the building on March 1, 2020. The property owner, 601W Cos., is transforming the building into office space. Other tenants who have signed office leases at the building include Walgreens, candy manufacturer Ferrara and the Chicago Metropolitan Agency for Planning. Work on the $800 million adaptive reuse project is underway. Plans call for a food hall, fitness center, library and multi-acre rooftop park. Stephen Smith, Jamey Dix and Daniel Heckman of The Telos Group represented building ownership in the lease transaction with AbelsonTaylor. Jack Keenan of Cushman & Wakefield represented the tenant.
MALVERN, PA. — Newmark Knight Frank has brokered the $15.5 million sale of Malvern Executive Center, a 91,190-square-foot office campus in Malvern. Located at 100 Deerfield Lane, the property was 73 percent occupied at the time of sale. The private campus includes abundant parking and a state-of-the-art fiber optic cabling system. Mike Margolis, Dave Dolan, Dave Garonzik and Jim Dugan of NKF represented the seller, PNL Cos., in the transaction. The buyer was undisclosed.
EAST HANOVER, N.J. — HFF has negotiated the sale of Eagle Rock Executive Office IV, a 178,000-square-foot office building in East Hanover. The sales price was undisclosed. Located at 120 Eagle Rock Ave., the property is situated within a three-building office park. The three-story property is currently 79 percent leased to a tenant roster that includes Prudential Insurance Company of America, Kessler Foundation and GFK. Kevin O’Hearn, Jose Cruz, Stephen Simonelli and Michael Oliver of HFF represented the seller, Boxer Property, in the transaction. The buyer was Northeast Capital Group.
NEW YORK CITY — Rideshare company Lyft, inc. has signed a 100,638-square-foot lease at Hudson Commons, a 28-story office tower in Manhattan. The building is located at 441 Ninth Ave. Cove Property Group, in partnership with the Baupost Group, purchased the property in December 2016 from Emblem Health. CBRE represented Cove Property Group in the transaction. Lyft was represented by Steven Rotter and Justin Haber of JLL. Peloton Inc. also signed a 312,200-square-foot lease at Hudson Commons in November 2018.
The Raleigh-Durham region’s continued strong job growth is fueling sustained demand from tenants, keeping the office market firmly in favor of landlords despite a notable increase in construction activity in recent months. The region added 26,500 jobs between October 2017 and October 2018 for a growth rate of 3 percent. Unemployment fell from 3.8 percent to just 3.0 percent during this time, hitting its lowest level since 2000. Despite not making the final cut for massive headquarters expansions from Amazon and Apple, Raleigh-Durham experienced significant economic development wins in 2018. Major job announcements came from office-using tenants such as Advance Auto Parts (435 jobs), Pendo (590 jobs), Arch Capital Services (365 jobs), Ipreo (250 jobs) and LabCorp (422 jobs). As in many markets across the United States, co-working operators significantly increased their presence in the region in 2018. Spaces has signed leases at five Raleigh-Durham properties, and WeWork committed to two locations and has stated that it plans to triple its local footprint in the near term. In November 2018, Forbes ranked North Carolina the nation’s No. 1 state in which to do business, and Urban Land Institute and PricewaterhouseCoopers named Raleigh-Durham the No. 3 U.S. market in their Emerging …
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TD Bank: Construction Delays have Bolstered the Multifamily Market
It may sound counterintuitive, but Gregg Gerken, head of U.S. commercial real estate at TD Bank, believes some of the challenges the multifamily development market has faced have actually benefited the market. He specifically references labor shortages and construction delays. There were concerns in some areas that too much product might come online too fast, hampering absorption and rent growth. But the recent speedbumps have allowed the pipeline to even out a bit, staggering the delivery of new units and preventing overbuilding. Demand still outpaces supply in many markets, which has led to average vacancy rates of around 5 percent and healthy rent growth. Both developers and renters can look forward to new product delivering at a steady pace in 2019. Watch the video to hear takeaways from MBA CREF and 2019 predictions from Gerken.
DALLAS — CBRE Hana, the newly formed coworking subsidiary of the Los Angeles-based full-service real estate firm, will open its first space within PwC Tower at Park District, a 500,000-square-foot office building in Dallas. The space will offer private office suites, conferencing facilities and event space, and the location offers walkability to the Uptown and Arts District areas, as well as Klyde Warren Park. The space is expected to open in mid-2019.
FREMONT, CALIF. — Talonvest Capital has arranged a $22.4 million bridge loan for CIP Real Estate for the purchase of Fremont Business Center, a flex business park located in Fremont. The four-year non-recourse bank loan will finance up to 68 percent of total project costs, including future funding for capital improvements and leasing costs. Fremont Business Center consists of five research-and-development buildings totaling 148,926 square feet of space. The property features suites ranging in size from 5,736 square feet to 28,391 square feet. Erich Pryor, Tom Sherlock and Eric Snyder of Talonvest Capital secured the financing.