FRISCO, TEXAS — New York-based Innovatus Capital Partners LLC has acquired Frisco Bridges Place, a 163,923-square-foot office building located along the $5 Billion Mile in Frisco. The Class A property was 93 percent leased at the time of sale to 23 tenants and features structured parking and direct access to the Dallas North Tollway. Innovatus will implement capital improvements to certain amenities, including the fitness center and café. The seller and sales price were not disclosed.
CHICAGO — Mansueto Properties LLC has acquired The Wrigley Building, which is located on North Michigan Avenue in Chicago. HFF arranged $150 million in acquisition financing, but the actual purchase price was $255 million, according to local media reports. The iconic Class A office and retail property totals 478,920 square feet. Originally built in 1921 and 1924, the property is listed on the National Register of Historic Places. The two-tower property, which has connecting walkways on the third and 14th floors, was renovated from 2012 to 2014 to create modern office and retail space, to further enhance the historic façade and to provide amenities such as a fitness center, tenant lounge and conference center. The towers are 90 percent leased. Tenants include American Medical Association, Leo Burnett, ABA, Nuveen, Walgreens and Perkins + Will. Stephen Skok of HFF arranged the 30-year, fixed-rate financing through a major life insurance company. The seller was BDT Capital Partners, according to local media.
SAN JOSE, CALIF. — PCCP, in a joint venture with Lincoln Property Co., has acquired Valley Technology Centre, a seven-building office and R&D complex located on 26.4 acres in San Jose. MWest sold the property for an undisclosed price. Built in 2000, the 464,000-square-foot property was 74 percent leased at the time of sale. The complex comprises seven two-story office and R&D facilitates with 18-foot clear height on the ground floors to accommodate roll-up doors and shipping/receiving requirements. The properties are located at 2660, 2680, 2700, 2720, 2740 Zanker Road and 2585 and 2595 Junction Ave. in North San Jose.
LOS ANGELES — Bellwether Enterprise Real Estate Capital has arranged $25 million in refinancing for a single-tenant office building located in the South Bay region of Los Angeles. Shelley Magoffin and Max Sauerman of Bellwether’s Los Angeles office secured the first mortgage financing for the borrower, a Los Angeles-based investor. The borrower plans to use the loan to refinance existing debt. The new non-recourse loan features a 12-year term and three years of interest-only payments followed by a 30-year amortization. Originally constructed in the 1950s and expanded in the 1980s, the property features 200,000 square feet of office space. At the time of refinancing, the building was occupied by a defense company, which recently extended its lease for 10 years. Bellwether Enterprise Real Estate Capital is the commercial and multifamily mortgage banking subsidiary of Enterprise Community Investment.
ALPHARETTA, GA. — A joint venture between Hines and Cousins Properties will develop 10000 Avalon, a 251,000-square-foot, Class A office building in Alpharetta, a northern suburb of Atlanta. The new building will be the second and final office building within Avalon, a 2.4 million-square-foot mixed-use development. The total development cost for the building is expected to be $97 million. Cousins has a 90 percent ownership interest in the joint venture and Hines has a 10 percent ownership interest. AXIS Reinsurance Co. will anchor the new building, occupying 76,000 square feet. Sam Holmes of CBRE arranged the 15-year lease on behalf of the insurance company, which is a subsidiary of AXIS Capital Holdings Ltd. Hines and Cousins will start construction on 10000 Avalon this month, with initial occupancy scheduled for early 2020. The building is located adjacent to 8000 Avalon, which Hines and Cousins delivered in June 2017. The building is currently 98 percent leased to tenants such as SAP, Microsoft and coworking operator Spaces.
In 2008, the credit crisis had gripped the world and in particular, the Midwest. Lenders, whether CMBS or life insurance companies, had put large “X’s” through Michigan on their maps. And Detroit? South of 8 Mile, you couldn’t get a deal done. Enter entrepreneur businessman Dan Gilbert. Inspired by an intern spurning his then Livonia-based Quicken Loans for a more urban, walkable environment in Chicago, Gilbert made the bold decision to move his entire operation to downtown Detroit. Now in 2018, Ford, GM and Chrysler (and various suppliers) are humming, resulting in a decade-low statewide unemployment rate of 4.8 percent. The central business district (CBD) and Midtown Detroit multifamily occupancy rates are at 95 percent, with office just a touch under that, according to CoStar Group. And in downtown Detroit, which many in the metro area once regarded as a quasi-War Zone, vacant buildings are selling for millions of dollars and millennials in yoga pants dot the streets. Detroit’s resurgence since 2008 has earned it the nickname of “America’s Great Comeback City,” with no better metaphor than Ford Motor Co. recently buying one of the world’s great eyesores, Michigan Central Station, the former train station. However, the city’s renaissance is …
BEDFORD, MASS. — JLL has negotiated the sale of the Xchange at Bedford, a 479,000-square-foot creative R&D and life science campus in Bedford. The property sold for $107.7 million. JLL represented the seller, The Davis Companies, in the transaction. A partnership between Jumbo Capital Management and Sound Mark Partners purchased the eight-building office campus. The Xchange was 89 percent leased to five tenants at the time of sale. The campus is anchored by iRobot’s 272,000-square-foot long-term lease, which runs through 2030. iRobot is an advanced technology company that produces the Roomba Robot Vacuum.
DALLAS — Common Desk, a Dallas-based coworking and office amenities provider, has acquired The Gym of Social Mechanics, a fitness concept that revolves around body weight movements, yoga and cardio. The east Dallas-based gym was founded in 2013. Common Desk will offer similar fitness services to occupants at the buildings it serves, giving landlords an alternative to developing full-service gyms.
CHICAGO — Echo Development Group Inc. has purchased 2401 W. Grace on Chicago’s northwest side for just under $14 million. AT&T Services Inc., a subsidiary of AT&T, occupies the single-tenant office building. AT&T has completed a renovation of the 93,000-square-foot property and recently announced the addition of 500 call center jobs at the site. The seller was not disclosed.
CHICAGO — American Street Capital (ASC) has arranged a $3.5 million bridge loan for the acquisition of a 25,000-square-foot office building in Chicago’s River North neighborhood. Built in 1920, the five-story building is currently vacant and in need of repairs. The buyer plans to renovate the property to include modern floor plans and amenities for tenants. Igor Zhizhin of ASC arranged the floating-rate loan, which features a full term 18 month interest reserve. A commercial bank provided the loan.