WASHINGTON, D.C. — JBG Smith has sold Executive Tower, a 130,000-square-foot office building in Washington, D.C. Exan Capital acquired the asset for $121.4 million. The 11-story building is located at 1399 New York Ave. in D.C.’s East End submarket. Collins Ege and Nicholas Pappas of Eastdil Secured arranged the transaction on behalf of JBG Smith. Executive Tower was 93 percent leased as of June 30.
NASHVILLE, TENN. — Third & Urban and FCP have acquired the former Madison Mill, located along Charlotte Avenue in Nashville, with plans to redevelop the site into a 160,000-square-foot office and retail project. Dubbed Sylvan Supply, the project will be divided into six buildings connected by open corridors and terraces, providing outdoor workspaces for tenants. The development will feature 130,000 square feet of creative office space with open floor plans, large windows and outdoor space, as well as 27,000 square feet of retail and dining space. The redevelopment will preserve the existing buildings, which were originally used for the production of high-quality wood products. Centric Architecture and landscape architect Hodgson Douglas are designing the project, and Gay Construction is the general contractor. Bo Tyler, Bill Adair and Ashley Albright of JLL are handling the office leasing, while Elliott Kyle of Equitable Property Co. is handling the retail leasing. The development team will break ground on Sylvan Supply next month, with completion scheduled for the fourth quarter of 2019.
YARDLEY, PA. — Cushman & Wakefield has secured $63 million in acquisition financing for the Lower Makefield Corporate Center in Yardley. John Alascio, Alexander Hernandez, Sridhar Vankayala and TJ Sullivan of Cushman & Wakefield secured financing on behalf of Rubenstein Partners through lender Rialto Capital Management. The eight-building, 467,000-square-foot office complex includes two campuses on Stony Hill and Township Line roads.
HAMILTON, N.J. — NKF Capital Markets has brokered the $50.5 million sale of a two-building office portfolio in Hamilton. The two net-leased properties are located at 600 and 700 Horizon Drive. The 600 Horizon building is leased to Verizon Communications and 700 Horizon is leased to AAA. Steven Schultz, Kevin Welsh, Steve Tolkach, Tony Georgiev and Brian Schulz of NKF represented the seller, Mack-Cali Realty, in the transaction. The buyer was undisclosed.
RESTON, VA. — Bridge Investment Group has acquired The Campus at Sunrise, a 255,000-square-foot office campus in Reston. The three-building property is situated on 12 acres, roughly 22 miles west of Washington, D.C. Bridge will renovate all three buildings, constructed between 1987 and 1990, with updated lobby areas, an enhanced tenant amenity center, flexible spec suites, communal outdoor areas and special events and entertainment for tenants. The Campus at Sunrise is situated within walking distance to the Wiehle-Reston East Metro station and a half-mile from the planned Reston Station mixed-use community, which will include 100,000 square feet of restaurants and retail, as well as residential units. The office campus was 85 percent leased at the time of sale. The name of the seller and sales price were not disclosed.
NEWPORT BEACH AND IRVINE, CALIF. — PCCP has provided a $128 million senior loan to a joint venture between Angelo Gordon and Lincoln Property Co. for the acquisition and leasing of a four-property office portfolio in Newport Beach and Irvine. Totaling 540,000 square feet, the portfolio includes the 181,000-square-foot Redstone Plaza, an 83,000-square-foot property at 1201 Dove St. in Newport Beach, the 163,000-square-foot Inwood Park and the 112,000-square-foot Newport Summit in Irvine. Tenants from a range of industries — including finance, marketing, tech, food and beverage, legal, healthcare and real estate — occupy the properties. The buyer plans to execute an improvement plan to capitalize on strong rent growth and leasing in the submarket, as well as fill any remaining vacancy.
Some of the larger companies with long-term growth forecasts are focusing on expansion and amenity-rich office environments for recruiting purposes. However, more people in less space continues to be the trend for companies with slower growth opportunities that are focused on efficiencies and overhead costs. The average standard amount of office space per employee dropped from 225 square feet per person to between 150 square feet and 175 square feet per person in the past couple years. That being said, occupancy cost is not always the main driver in choosing an office location. There seems to be much more emphasis now on quality, functionality and conveniences. In many cases, this is based more on how we work rather than just cost savings. Open work spaces, perks like on-site dining and retail, and providing collaborative environments that foster employee interaction have proven to increase employee productivity significantly. Design is a critical component of this type of work space. Companies are looking for workplace designs and furniture systems that offer flexibility and adaptability as technology evolves. Technological infrastructure enhances the culture and efficiency of a business and protects the security of a company’s trade information. It also saves resources like …
BURLINGTON, MASS. — HFF has secured a $30 million refinancing for Blanchard Woods, a three-building office portfolio in Burlington. HFF represented the borrower, Duffy Properties, in securing an 11-year, fixed-rate loan through Nationwide Life Insurance Co. Blanchard Woods is located at 76, 78 and 80 Blanchard Road, approximately 13 miles north of Boston. The portfolio spans 194,421 square feet and is 91 percent leased to 19 tenants, including anchor tenant Cambridge Trust.
RIVERVIEW, FLA. — Transwestern has arranged the $14.7 million sale of a two-building flex/office portfolio located at 2600 and 2700 Falkenburg Road in the Tampa Bay area of Riverview. John Bell and Walter Byrd of Transwestern arranged the transaction on behalf of the seller, a special servicer, through the Ten-X online auction platform. The name of the buyer was not disclosed. The buildings, which total 134,00 square feet, are situated at the gateway to First Park @ Brandon office park. Transwestern assumed management and leasing of the portfolio when it was 35 percent occupied. Working with Hain Commercial Realty, Transwestern repositioned the buildings and raised occupancy to 86 percent at the time of sale.
MILWAUKEE — Core Creative has renewed its 14,408-square-foot office lease at the Tannery Business Center in Milwaukee. The marketing agency occupies the space at 600 W. Virginia St. Ned Purtell and Scott Revolinski of Founders 3 Real Estate Services represented the landlord, SARA Investment Real Estate LLC.
