EAGAN, MINN. — An affiliate of Group RMC has acquired the 10-building Grand Oak Business Park in Eagan, a suburb of Minneapolis. The purchase price was not disclosed. The office buildings total 550,224 square feet. The 98-acre campus features outdoor amenity areas and trails. Ryan Watts, Sonja Dusil, Judd Welliver and Tom Holtz of CBRE represented the seller, an affiliate of Equus Capital Partners Ltd. This is the first acquisition in the Minneapolis market for Group RMC.
DALLAS — San Francisco-based software company Salesforce has signed a lease at The Union, a mixed-use property located at 2300 N. Field St. in Dallas that includes a 420,000-square-foot office tower and a 31-story residential building. The square footage of space was not disclosed, but Salesforce has confirmed it to be at least 100,000 square feet. According to brokers, the deal was the largest office lease executed in Uptown Dallas when it closed in late 2018. Clay Vaughn and Preston Lynn of CBRE represented Salesforce in the lease negotiations. John Brownlee, Gini Rounsaville and Brooke Oliver of Peloton Commercial Real Estate represented the landlord. The lease brings The Union to 90 percent occupancy. The office component of The Union opened in October 2018. The entire development is expected to be complete by spring 2019.
CLIFTON, N.J. — Marcus & Millichap has arranged the $2.6 million sale of a 21,240-square-foot office building in Clinton. Located at 95 Main Ave., the property was built in 1985. Fahri Ozturk and Richard Gatto of Marcus & Millichap’s New Jersey office represented the seller, a private investor, in the transaction. The buyer was also a private investor.
COLORADO SPRINGS, COLO. — Crescent Real Estate LLC has received $102.5 million in acquisition financing for a suburban office portfolio in Colorado Springs. Trey Morsbach, Jim Curtin and Leon McBroom of HFF secured the five-year, floating-rate acquisition loan through Bank of America Merrill Lynch. The 13-building portfolio features more than 1 million square feet of office space. At the time of acquisition, the portfolio was 75 percent occupied by a variety of industry sectors, including aerospace, government and military/defense contractors, technology and healthcare. Major tenants include Northrop Grumman, Army National Guard, GSA, The Spectranetics Corp., Booz Allen Hamilton and United Healthcare.
Investors have renewed their interest in office properties in the Washington, D.C. central business district (CBD) based on increasing tenant demand. The market is putting a higher value on the built-in amenities that exist in the CBD, like dining and entertaining options, transportation accessibility and architecturally timeless buildings. We can always tell the center of gravity of a city by where the brokerage shops locate. In D.C., CBRE’s latest move to the CBD from the East End puts all of the agency brokerage shops within feet of each other. With a healthy stock of historically significant, well-built office properties with value-add potential, the CBD is primed to continue its office renaissance. Transportation Infrastructure While the existing public transportation infrastructure in the CBD is an important factor driving businesses back to the submarket, shaving 20 to 30 minutes from commute times — whether by car, bus or train — is decidedly attractive to today’s employers. Combined with the variety of established dining, entertainment and hospitality options in the CBD, transportation is vital to attracting high-profile employers. The city’s law firms in particular have taken note. Over 20 notable practices have relocated their offices to the CBD in the last year alone. …
HOUSTON — CBRE has negotiated a 13,371-square-foot office lease at 3737 Buffalo Speedway in Houston on behalf of The Houston Trust Co., and independent personal trust firm. The space will serve as the company’s new headquarters. Weldon Martin of CBRE represented the tenant in the lease negotiations. Madison Marquette represented the landlord, Houston 3737 Buffalo LP.
BRIDGEWATER, N.J. — Cushman & Wakefield has brokered the sale of a 192,741-square-foot office building in Bridgewater. Located at 721 U.S. Highway 202/206, the four-story property is situated on nearly 16 acres. The property was vacant at the time of sale. Gary Gabriel, Andrew Merin, David Bernhaut, Brian Whitmer and Frank DiTommaso of Cushman & Wakefield’s New Jersey capital markets team represented the seller, Mack-Cali Realty Corp., in the transaction. The buyer was a local developer.
OAK BROOK AND WARRENVILLE, ILL. — Cronheim Mortgage has arranged a $47.7 million loan for the acquisition of Oak Brook Gateway and Cornerstone I at Cantera in suburban Chicago. Oak Brook Gateway is a multi-tenant office building in Oak Brook. Tenants include Lewis University, the U.S. Census Bureau, Thomson Reuters and Oxford Bank. Cornerstone I at Cantera is a multi-tenant office building in Warrenville with 80 percent occupancy. A national lender provided the 10-year loan, which features an interest rate of 4.84 percent and a 30-year amortization schedule. The loan represented 75 percent of the acquisition price. Fairbridge Partners was the borrower.
The Hawaii investment sale market was active in 2018 with an abundance of capital seeking investment opportunities throughout the state and across all product types. Mortgage availability from local banks and non-local financiers remained strong, and there was a steady flow of new interest from debt and equity sources looking for first opportunities in Hawaii. Last year’s transaction volume (including entity level) was up 33 percent from 2017 to $5.5 billion. Institutional and cross-border investment volumes were up from 2017 and performing well above the 10-year average. It was a slower year for private investors and REITs, though institutional capital from Singapore, Zurich, Kuwait, Germany and Japan were the foreign standouts in 2018. Entity-level activity boosted Hawaii’s transaction volume significantly in 2018. We anticipate this story to continue to spill over into Hawaii through 2019 as institutions deploy large amounts of capital to build scale. Brookfield’s acquisition of GGP was the largest entity-level transaction, which included the 2.5 million-square-foot Ala Moana Center with its two office buildings consisting of about 400,000 square feet, the Whalers Village in Maui and the Prince Kuhio Plaza in Hilo. The hospitality sector led the charge for the third year in a row with $2.45 …
OMAHA, NEB. — Investors Realty has negotiated the sale of the Financial Plaza office building in Omaha for $8.9 million. Located at 9140 W. Dodge Road, the 85,604-square-foot building is 81 percent leased. Tenants include TIAA-CREF, Travelex Insurance Services, Verizon Business Services and Hugo Enterprises. Ember Grummons of Investors Realty and Martin Panzer and Kurt Weeder of Cushman & Wakefield/The Lund Company represented the seller, an affiliate of Jasper Stone Partners. The buyer, an affiliate of Lockwood Development, plans to extensively renovate the interior and exterior portions of the building.
