HOUSTON — Houston-based Q10 KDH has arranged a $26.1 million non-recourse loan for a portfolio of single-tenant office buildings located across Texas. The portfolio consists of 20 assets totaling 295,104 square feet across 18 markets. Proceeds were used for both acquisitions of new properties and refinancing of existing assets in the undisclosed borrower’s portfolio. Emily Zarcaro of Q10 KDH arranged the 10-year, fixed-rate loan, which included five years of interest-only payments, through Silverpeak Argentic. The names of the properties were not disclosed.
PORTLAND, ORE. — Portland-based NBP Capital has purchased the historic Central Courthouse, located at 1021 SW Fourth Ave. in downtown Portland. Multnomah County sold the property for $28 million. Built between 1909 and 19014, the eight-story, neo-classical building offers a gross building area of 323,486 square feet, with a rentable building area to be determined after conversion. The courthouse has large floor plates more than 30,000 square feet and flexible CXd Zoning allowing for a variety of commercial uses. The building is currently home to Multnomah County’s court operations, and the County will continue to lease the property until completion of its new Central Courthouse at SW First Avenue and SW Madison Street. The new property is slated for completion in 2020. Charles Safley and Graham Taylor of CBRE’s Portland office represented the seller in the transaction.
Like most major cities, Houston has had its fair share of market cycles. However, this most recent decline in the local economy’s growth rate that was caused by a steep drop of oil prices put a heightened level of stress on the Houston office market. Fortunately, the energy sector has turned the corner, and, paired with the ever-diversifying economic base, the Houston economy is buzzing again. As such, Houston’s population and job growth have translated into early signs of improvement in office market fundamentals. The metro’s employment base, which is currently seeing some of the highest employment numbers in history, is growing at more than twice the national rate. This rapid rate of expansion has provided the office market with much-needed positive momentum as we look toward the new year. Improving Fundamentals The much-anticipated turnaround in the office market is here. Asking rents, occupancy rates and absorption are all increasing across the metro area and across all building classifications. In the third quarter of 2018, the office market posted approximately 1.1 million square feet of positive net absorption. This is a significant improvement compared to the negative net absorption of roughly 1.1 million square feet in the first quarter of …
NEW ORLEANS — Money360 has arranged a $5.1 million refinance loan for Executive Plaza Office Building, located at 10001 Lake Forest Blvd. in New Orleans. The 36-month, non-recourse loan was arranged for an undisclosed borrower. The building spans 114,615 rentable square feet.
MADISON, N.J. — The open office concept, which became a prominent design trend over the last decade, has declined in popularity with concerns over a lack of privacy and distractions. New research commissioned by Coldwell Banker Commercial and conducted online in late September by The Harris Poll found that almost three-quarters of employed adults would be comfortable working in an open office if they had access to a private space or small work areas, and if noise and distractions were limited. The consumer survey of more than 2,000 adults ages 18 and older found that Americans seem to consider private and quiet spaces more important than team-meeting spaces, as only 66 percent of respondents said they would be amenable to working in an open office if there were large meeting spaces or conference rooms available. Also less appealing was sharing workspace, as 52 percent of those surveyed would not be comfortable working in an open office if it meant multiple workers in one workspace. “It’s important for commercial building designs to accommodate a variety of working styles, and the more we know what workers want — in this case, an open office with private spaces and limited noise — the …
EFFINGHAM, ILL. — CBRE | Capstone has arranged a $180.5 million CMBS loan for the refinancing of a 169-property portfolio occupied by Heartland Dental across 24 states. Jon Faulkenberg, Shawn Givens, Chase Gambill and Ken Higgins of CBRE | Capstone arranged the fixed-rate loan on behalf of the borrowers, Professional Resource Development Inc. and WMG Development LLC. Jonathan Brumleve and Curt Frost of Professional Resource Development led the transaction on behalf of the borrowers. UBS provided the 10-year loan, which features a 30-year amortization schedule and a 57 percent loan-to-value ratio. Effingham, Ill.-based Heartland Dental provides comprehensive administrative support services for marketing, accounting and other aspects of a dentist’s business.
ST. LOUIS PARK, MINN. — Accesso Partners LLC has acquired The Towers at West End, a pair of Class A office towers in St. Louis Park, for $115.5 million. The nine-story towers span 497,234 square feet and are located just west of Minneapolis. The largest tenants include MoneyGram Payment System, Concur Technologies and Magenic Technologies. Current occupancy is 84 percent. Amenities include a fitness room, yoga studio, conference center, tenant lounge and café. Accesso plans to make some additional upgrades and improvements to the common areas, according to Brian Rosen, chief investment officer. Ryan Watts of CBRE brokered the sale on behalf of the seller, a fund managed by DRA Advisors LLC. Susan Hill of HFF arranged acquisition financing. Samantha Shimak of Accesso will serve as property manager, while Jon Dahl of JLL will provide leasing services.
DETROIT — Money360 has provided a $17 million bridge loan for the refinancing of 1200 Sixth St. in Detroit’s Corktown neighborhood. The two-tower office property spans 600,000 square feet. The South Tower was constructed in 1966, while the North Tower was built in 1971. The nonrecourse loan features a two-year term and a loan-to-value ratio of 41 percent. The borrower is 1200 Sixth Street LLC.
IRVING, TEXAS — Fortune 500 pharmaceutical company McKesson Corp. (NYSE: MCK) will relocate its corporate headquarters from San Francisco to Irving’s Las Colinas district, where it already has a regional office. The company’s new campus will obtain LEED Gold certification and feature an array of amenities and enhanced technology capabilities, according to a statement from the company. The relocation will begin in April of next year. The number of jobs that will be relocated was not provided.
CHARLOTTE, N.C. — Honeywell is set to relocate its global headquarters from Morris Plains, N.J., to Charlotte. The company will also move its Safety and Productivity Solutions headquarters from Fort Mill, S.C., to Charlotte. The Fortune 100 technology company plans to move 150 to 200 jobs from New Jersey to Charlotte and about 100 from South Carolina between now and September. The company also plans to add 500 corporate jobs before 2024. The move comes as part of the recently passed North Carolina Job Development Investment Grant that awards state and local incentives to companies. The News & Observer reports that the State of North Carolina will give Honeywell an incentive package of $42.5 million for the relocation. Honeywell specializes in industry specific solutions that include aerospace products and services, control technologies for buildings and industry and performance materials globally.