Despite a slow start to the year, the Northern New Jersey office market decreased vacancy to 20.2 percent as we moved from fourth quarter 2016 into 2017. More than 750,000 square feet of office space is expected to be absorbed in the market to drop the vacancy rate 20 basis points. New deliveries in Morris and Essex Counties, including a 200,000-square-foot office for UPS in Parsippany, are leading the way. Moreover, landlords and investors alike are upgrading and investing in larger redevelopment projects throughout the state which has increased leasing activity. In response to healthier market conditions, owners have also increased rents for office space, which caused higher vacancy rates at the beginning of the year. The average asking rent is anticipated to climb to $27.59 per square foot this year, outpacing the 2 percent rise in office rents posted in 2016. In first quarter, the Hudson Waterfront saw an increase of 3.6 percent per square foot. Hudson Waterfront The main trends in Jersey City and Hoboken are driven by the large populations of millennials in and around surrounding areas. Millennials account for 27.2 percent of the population in Hudson County. In the last 12 months, investors — particularly New …
IRVING, TEXAS — Bridge Investment Group LLC has purchased Tower 1320, a 243,109-square-foot, Class A office tower located within the 12,000-acre Las Colinas business district in Irving. Built in 1981, the 10-story tower features an adjacent two-story parking deck with 1,045 spaces. Evan Stone, Gary Carr, Eric Mackey, John Alvarado, Jared Chua, Robert Hill and Mary Claire Houseman of CBRE represented the seller, Arden Group, in the transaction. Peloton Commercial Real Estate will handle the marketing and leasing of the property.
SPRING, TEXAS — The J. Beard Real Estate Co. has arranged the sale of a 22,000-square-foot office/warehouse property situated on two acres at 26009 Budde Road in the northern Houston suburb of Spring. The four-building property was built in 1999 and is currently occupied by seven tenants. Jeff Beard of J. Beard represented the seller, Pines Business Park LLC. San Antonio-based Windswood Corp. purchased the asset for an undisclosed price.
SCHAUMBURG, ILL. — J.C. Anderson Inc. has completed an 11,000-square-foot office renovation for Athenex in Schaumburg, a northwest suburb of Chicago. New York-based Athenex is a biopharmaceutical company. The property is located at 10 N. Martingale Road. J.C. Anderson added conference rooms, a videoconference boardroom, open offices and a pantry. Matt Kantro and Bob Hickey of J.C. Anderson led the project team, while Whitney Architects provided architectural services.
LAKE ZURICH, ILL. — PREMIER Design + Build Group LLC has completed a 51,000-square-foot office headquarters for Echo Inc. in Lake Zurich, about 40 miles northwest of Chicago. The manufacturer of power equipment already occupies an existing industrial facility at the site. In addition to a two-story lobby, the property features 14 private offices on the first floor and 27 offices on the second floor. A new training and conference area can accommodate more than 100 people. Mark Melone, Samantha Skopek and Tom Johnson led the project team on behalf of PREMIER. The project team also included architect Stephen Rankin Associates, structural engineer Structurelogic Inc. and civil engineer Kimley-Horn.
SKOKIE, ILL. — The Missner Group has completed a 38,000-square-foot office headquarters renovation for Generation Brands in Skokie, about 15 miles northwest of Chicago. The two-phase project included 19,000 square feet of office renovations and the build-out of a 19,000-square-foot showroom for the lighting and ceiling fan company. Phase I included the construction of private offices, conference areas, a corporate training room, kitchen area and employee lounge area. The showroom features lighting and fan fixtures with ceilings and floors that complement the lighting. Kent Nepras and Scott Nomellini led the project team on behalf of the Missner Group. Dearborn Architects provided architectural services.
ATLANTA — Ackerman & Co. has sold nine buildings within Phoenix Office Park in South Atlanta for $22 million. Stewart Calhoun, Samir Idris and David Meline of Cushman & Wakefield represented Ackerman & Co. in the transaction. WePartner, an Atlanta-based firm, purchased the assets, which total 334,675 square feet. The properties included in the portfolio were Two Crown Center, located at 1745 Phoenix Blvd.; four buildings located at 1800 Phoenix Blvd.; South Pointe located at 1691 Phoenix Blvd.; 1640 Phoenix Blvd.; and 1680 Phoenix Blvd. Ackerman & Co. originally acquired the 100-acre, 11-building Phoenix Office Park in 2005 and invested in capital improvements. The properties that sold to WePartner were the remaining assets in the portfolio. Located within the Airport South Community Improvement District (CID), the office park is roughly three miles from Hartsfield-Jackson Atlanta International Airport. At the time of sale, the portfolio was 86 percent leased to tenants including LogistiCare, the State of Georgia and the U.S. Department of Veterans Affairs.
MINNEAPOLIS — Kraus-Anderson has completed its new downtown Minneapolis headquarters, located at 8th Street and 5th Avenue. Employees from throughout the metro are now moving into the 100,000-square-foot campus, which consolidates the construction firm’s Twin Cities operations in a five-story facility. The new headquarters will accommodate approximately 300 employees, doubling the current downtown staff with room for future expansion on the site. Consolidation will combine employees from the Kraus-Anderson construction office in Circle Pines, as well as Kraus-Anderson Realty Co. and the development offices in Bloomington. The new building will also house Kraus-Anderson Mortgage and the parent corporation, Kraus-Anderson Cos. Kraus-Anderson Insurance will continue to operate from its offices in Burnsville. The first floor features a waiting area, conference rooms, employee cafeteria and fitness center. The majority of employee office space is located on floors two through five. An open office concept is used throughout the building, featuring electrically operated workstations, which allow employees to easily change from sitting to standing positions. Pope Architects designed the office. Kraus-Anderson partnered with ESG Architects to develop the downtown block surrounded by 8th and 9th streets.
PLAINFIELD AND DANIELSON, CONN. — A national healthcare real estate company has purchased three medical office buildings in Plainfield and Danielson in two separate transactions for an undisclosed price. Two of the properties were sold by Day Kimball Healthcare as part of a sale-leaseback, while the third property was sold by PGLC LLC, a physicians group. Day Kimball Healthcare also executed a long-term lease for the third property. The three properties offer a total of 45,000 square feet. Lisa Menin of Jacobson Properties, John LaBella of RE/MAX Right Choice and Leo Jones of Cushman & Wakefield/Pyramid Brokerage Co. advised Day Kimball in the transaction.
RALEIGH AND CARY, N.C. — CBRE | Raleigh has arranged the sale of a five-building office portfolio in metro Raleigh. Ben Kilgore, Jim McMillan, Elliott Brewer and Leslie Holmes of CBRE | Raleigh arranged the transaction on behalf of the seller, Highwoods Properties Inc. Alder Kawa Real Estate Advisors (AKREA) acquired the assets for a combined $38.9 million, according to the Triangle Business Journal. The portfolio includes Situs Office Park, a three-building office park totaling 156,665 square feet located adjacent to the interchange of Interstates 440 and 40 in Raleigh, that sold for $25.5 million. At the time of sale, the office park was 89.7 percent leased to tenants including Circle K Convenient Stores, GSA, Millennial Patient Services and Ameriprise. ParkWest Office Park, located off of Weston Parkway in Cary, was acquired for $13.4 million. The property includes ParkWest One and Two and totals 94,800 square feet. At the time of sale, the property was 85.5 percent leased to tenants including Arysta Lifescience’s U.S. headquarters, Informatica and Ignite Social Media. Lee Clyburn and Brian Carr of CBRE | Raleigh’s Investor Leasing group will handle the portfolio’s leasing assignment.