Office

Downtown Portland, Maine, Class A Office Market Remains Tight

by Taylor Williams January 3, 2018

As 2018 begins, it appears that the Greater Portland office market has continued to hold on to low vacancy rates as supply remains low across both Class A and Class B buildings throughout the market. CBRE/The Boulos Co is conducting its annual market outlook; it will be exciting to see the results, which we release in January. I anticipate the numbers to show a steady or slight decrease in vacancy rates across all submarkets but also show a much lower absorption rate, as momentum has appeared to slow down over the last 18 months. Transaction volume is trending far lower than in previous years and could possibly be the lowest number of transactions in the last seven years. However, there were a number a relatively large transactions completed over the last six months that will have a larger impact on the overall vacancy rate than simple transact ion volume. And we must consider that the small number of leases signed could also be due in part to limited supply. The Downtown Portland Class A office market, in particular, continues to operate at historically low vacancy rates. Over the last five years, there has been a steady decline in Class A …

January 3, 2018

Colorado Office Western

Heitman Acquires 309,988 SF Trophy Office Building in Denver

by Nellie Day January 2, 2018

DENVER — Heitman LLC has purchased a 309,988-square-foot trophy office building in Denver for an undisclosed sum. The Class AA tower is located at 1401 Lawrence St. It sits adjacent to Larimer Square and the Four Seasons hotel at the convergence of Denver’s LoDo (lower downtown) neighborhood and the Central Business District. The property features 10-foot finished ceilings with floor-to-ceiling windows, outdoor terraces and balconies, 360-degree views from every floor including unobstructed panoramas of the Rocky Mountains, an exterior glass façade, state-of-the-art building systems, and a seven-story, above-grade parking garage. The asset is 98 percent leased to tenants like CoBiz Financial, Jagged Peak Energy and law firm Polsinelli. CBRE represented the seller, First Gulf Corporation of Toronto, which also developed the property.

January 2, 2018

Loans Midwest Minnesota Office

Mesa West Provides $20M Refinancing for Office Building in Minneapolis

by Kristin Harlow January 2, 2018

MINNEAPOLIS — Mesa West Capital has provided a $20 million loan for the refinancing of the Colwell Building in Minneapolis. Built in 1909, the 150,000-square-foot office building is located at 123 N. 3rd St. in the Warehouse District. A joint venture led by San Francisco-based Spear Street Capital recently completed the first phase of a multi-million dollar renovation of the property. Improvements included new terrazzo floors in the lobby, upgrades to the elevator systems, a new HVAC system and new windows. Proceeds from the five-year loan will be used to build a fitness center and bike storage room, as well as to fund leasing and tenant improvement costs associated with stabilizing the building.

January 2, 2018

North Carolina Office Southeast

Cushman & Wakefield Brokers $30M Sale of Office Portfolio in Triangle

by Camren Skelton January 2, 2018

RALEIGH, N.C. — Cushman & Wakefield has arranged the $30 million sale of The Arbors, a three-building, 211,504-square-foot office portfolio in Raleigh. The buildings are located at 3120, 3128 and 3200 Highwoods Blvd., within Highwoods Office Center. Cushman & Wakefield arranged the transaction on behalf of the seller, a partnership between The Simpson Organization and Harbert Management Corp. A joint venture between B&G Real Estate Investment Management and Priam Capital acquired The Arbors, which was 99 percent leased at the time of sale. Dennis Hurley, Hillman Duncan and Patti Autry of Cushman & Wakefield will handle the portfolio’s leasing assignment on behalf of the new owners.

January 2, 2018

Louisiana Market Reports Office Southeast Southeast Market Reports

New Orleans’ Suburban Class A Office Space Still Outperforms U.S. Average

by John Nelson December 25, 2017

The greater metropolitan New Orleans office market contains approximately 15 million square feet of office space segregated into five distinct submarkets. Two major submarkets, the Central Business District (CBD) and Metairie (a suburban market), represent 94 percent of the total square footage. The occupancy rates of Class A properties in these two markets are 87.7 percent and 88.7 percent, respectively. These rates are 1.56 percent lower and 3.01 percent higher than the respective downtown and suburban Class A office averages nationally. The overall vacancy is limited to a select group of buildings resulting in limited options for tenants seeking more than 25,000 square feet of contiguous space. The New Orleans economy typically runs counter cyclically to the rest of the nation. It has enjoyed relative immunity from the lingering effects of the 2008 financial crisis and the relatively stagnant national economy. Over the last several years occupancy rates have trended above national averages and rental rates have experienced modest growth. New Orleans’ office market is performing well, consistently outperforming most national averages and rarely lagging far behind others. This track record of success can be attributed to several different factors. Due to geographic constraints there are limited sites available for …

December 25, 2017

New York Northeast Office

New York REIT Closes $520M Sale of 1440 Broadway in New York City

by Amy Works December 22, 2017

NEW YORK — New York REIT has completed the previously announced disposition of 1440 Broadway in New York for a total of $520 million to an unaffiliated third party. The office property was encumbered by a $305 million mortgage loan, which was fully satisfied at closing. Separately, New York REIT has entered into three separate contracts to sell its properties located at 306 E. 61st St., One Jackson Square and 350 W. 42nd St. in New York City to third-party buyers for an aggregate amount of $103.1 million. In the aggregate, the three properties are encumbered by approximately $43.4 million of mortgage debt, which will be satisfied in full at the respective closings. The closings are expected to occur in early 2018.

December 22, 2017

Loans New York Northeast Office

Broad Street Development, Invesco Complete $235M Recap of 423,000 SF Office Tower in Manhattan

by Amy Works December 22, 2017

NEW YORK CITY — Broad Street Development and Invesco have completed a $235 million recapitalization of 80 Broad Street, a 423,000-square-foot office tower located in Manhattan’s Financial District. The recapitalization comprises a $102 million first mortgage assumption, plus an additional $30 million mezzanine proceeds from AIG. Broad Street Development formed a joint venture with Atlanta-based Invesco for 80 Broad Street, transferring a controlling stake in the office tower for $235 million, or $550 per square foot. The partnership recapitalized the tower, taking out previous mezzanine lenders RXR Realty and Colony Capital. Adam Spies and Josh King of Cushman & Wakefield represented Broad Street in the recapitalization.

December 22, 2017

Illinois Midwest Office

Farpoint, Greco/DeRosa Investments to Redevelop 135,000 SF Loft Office Building in Rosemont, Illinois

by Kristin Harlow December 22, 2017

ROSEMONT, ILL. — Farpoint Development and Greco/DeRosa Investments have unveiled plans to redevelop a 135,000-square-foot loft office building located at 6300 North River Road in Rosemont. The $6 million core/shell renovation of the seven-story building is expected to begin immediately and be completed by mid-2018. The redevelopment of the property will include a fully renovated lobby, replacement of all exterior windows and staining of the exterior brick. The Class A office building will include a new fitness center, yoga room, conference facilities, tenant lounge and food market with outdoor seating. Jason Simon and Jonathon Connor of Colliers International will market the property for lease.

December 22, 2017

Office Texas

HFF Brokers Sale of 124,543 SF Office Building in Houston

by Taylor Williams December 22, 2017

HOUSTON — HFF has brokered the sale of 2400 Augusta Place, a 124,543-square-foot office building located in the West Loop/Galleria area of Houston. The four-story property was 85 percent leased at the time of sale to tenants in the engineering, legal, healthcare and communications industries. Marty Hogan of HFF represented the seller, Houston-based investment firm Interra Capital Group, in the sale. The buyer and sales price were not disclosed.

December 22, 2017

Georgia Office Southeast

BLT Sells Three Office Buildings Within Atlanta’s Concourse Corporate Center

by Camren Skelton December 22, 2017

ATLANTA — Building and Land Technology (BLT) has sold Concourse Buildings I, II and IV within Concourse Corporate Center, a 63-acre office development located in Atlanta’s Central Perimeter submarket. CBRE Global Investors acquired the two eight-story buildings and one four-story building, which encompass nearly half of the 2.2 million-square-foot development. Stamford, Conn.-based BLT originally acquired Concourse Corporate Center in 2015 for nearly $500 million, according to the Atlanta Business Chronicle, and was seeking offers on the project for as much as $580 million. The final sales price was not disclosed. BLT invested in capital improvements to the buildings including lobby and elevator renovations, new conference facilities and added outdoor amenity areas. BLT will retain ownership of the iconic “King and Queen” towers located within Concourse Corporate Center, with plans to implement additional enhancements. BLT has retained Atlanta-based Regent Partners to lease and manage the Concourse buildings on behalf of BLT.

December 22, 2017

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