Office

SL Green Sells 317,600 SF Office Building in Brooklyn to CIM Group for $171M

by Amy Works August 10, 2017

NEW YORK CITY — SL Green Realty Corp. has entered into an agreement to sell 16 Court Street, a 317,600-square-foot office building in Brooklyn, for a gross sale price of $171 million. The buyer is CIM Group, a full-service real estate and infrastructure fund manager. The transaction is expected to close during the fourth quarter of this year. The sale will generate net cash proceeds of approximately $164 million. The 36-story building is currently 94 percent occupied. Darcy Stacom of CBRE represented SL Green in the deal.

August 10, 2017

New Jersey Northeast Office

Colliers Negotiates $6.2M Sale of Office Building in Hammonton, New Jersey

by Amy Works August 10, 2017

HAMMONTON, N.J. — Colliers International has arranged the sale of a three-story office building located at the intersection of Routes 30, 54 and 206 in Hammonton. Interstate Commercial acquired the property from Hammonton 1 LLC for $6.2 million. At the time of sale, the 33,000-square-foot property was fully occupied by South Jersey Family Medical Center and South Jersey Energy Solutions, a subsidiary of South Jersey Industries. Evan Zweben of Colliers represented the seller, while Dan Silverstri of Interstate Commercial provided in-house representation for the buyer.

August 10, 2017

Michigan Midwest Office

CBRE Arranges Sale of Two-Building Office Portfolio in Troy, Michigan

by Kristin Harlow August 10, 2017

TROY, MICH. — CBRE has arranged the sale of Wilshire Plaza North and West in Troy, a northern suburb of Detroit. The sales price was $33 million, according to CoStar Group Inc. The two office buildings, comprising 349,625 square feet, are located at 900 and 1050 Wilshire Drive. The Class A portfolio was 90 percent leased at the time of sale. Tenants include SSOE Group, Meredith Corp., Harvey Kruse PC, Tyco Electronics Corp. and MasterCard, according to CoStar. Anne Galbraith Kohn of CBRE represented the seller, an international institutional owner. Group RMC purchased the portfolio, the company’s first office acquisition in Michigan.

August 10, 2017

Office South Carolina Southeast

Holder Properties Sells 18-Story Office Building in Downtown Columbia for $65M

by Camren Skelton August 10, 2017

COLUMBIA, S.C. — Holder Properties has sold Main and Gervais, an 18-story, 186,000-square-foot office building located at 1221 Main St. in downtown Columbia. The sales price was not disclosed, but The State reports California-based KBS Realty Advisors purchased the asset for $65 million. Patrick Gildea, Matt Smith, Justin Parsonnet, Martin Moore and Aaron Dupree of CBRE represented Holder Properties in the transaction. The Class A office tower is Energy Star-certified and features The Oak Table restaurant and a fitness center. At the time of sale, Main and Gervais was 98 percent leased to tenants including Edens, NBSC/Synovus Bank, McNair Law Firm, Womble Carlyle, Rogers Townsend and Parker Poe. Holder Properties will continue to manage the property and handle the leasing assignment on behalf of KBS Realty Advisors.

August 10, 2017

Maryland Office Southeast

Cushman & Wakefield Completes $30.1M Sale of Four-Building Office Portfolio in Metro Baltimore

by Camren Skelton August 10, 2017

COLUMBIA, MD. — Cushman & Wakefield has arranged the $30.1 million sale of Lakeview I and II, a four-building office portfolio in Columbia, roughly 20 miles southwest of Baltimore. Jonathan Carpenter and Graham Savage of Cushman & Wakefield represented the seller, Goldman Sachs, in the transaction. CSG Partners acquired the buildings, which are situated at 9801, 9821, 9841 and 9861 Broken Land Parkway. The portfolio was 82 percent leased at the time of sale. CSG Partners has retained Cushman & Wakefield’s Andrew Smith and Scott Matthews to handle the property’s leasing assignment.

August 10, 2017

Features Office Top Stories

July Jobs Report Is Good News for Office Sector in Particular, Say Economists

by Camren Skelton August 10, 2017

Total nonfarm payroll employment rose by 209,000 in July, according to the Bureau of Labor Statistics (BLS), beating expectations and boosting confidence that this expansionary phase of the economy still has legs. A panel of economists assembled by the Wall Street Journal predicted a net gain of 180,000 jobs. Job growth is always a welcome sign for the commercial real estate industry — especially when the numbers exceed expectations — because employment drives demand for all types of space. To dissect the latest job figures and identify some of the underlying trends, REBusinessOnline reached out to three real estate economists for their insights: Steve Hovland, director of research at Irvine, California-based HomeUnion Inc.; Ken McCarthy, principal economist and applied research lead for the U.S. based in Cushman & Wakefield’s New York office; and Ryan Severino, chief economist at JLL who works out of the New York City office. What follows are their edited responses. REBusinessOnline: From a commercial real estate standpoint, what did you find most encouraging about the July job numbers and why? Ryan Severino: We are in the ninth year of economic expansion, and business and professional services continues to represent about one-quarter of the job gains, both …

August 10, 2017

Northeast Office Pennsylvania

Joint Venture Acquires 40,000 SF Office Building in Metro Philadelphia for $8.2M

by Amy Works August 9, 2017

KING OF PRUSSIA, PA. — A joint venture between Merion PHC Holdings LLC and Moreland Development LLC has acquired an office property located at 950 Pulaski Drive in King of Prussia, approximately 20 miles northwest of Philadelphia. Hemar Realty Co. sold the asset for $8.2 million. The 40,000-square-foot property is currently configured as physicians’ offices, exam rooms and labs. Gary Leone and Steven Gartner of CBRE represented the seller in the deal.

August 9, 2017

Mixed-Use Multifamily New York Northeast Office Retail

Cleeman Realty Group Facilitates Two Sales in Brooklyn Totaling $6.1M

by Amy Works August 9, 2017

NEW YORK CITY — Cleeman Realty Group has brokered two separate transactions in Brooklyn totaling $6.1 million. In the first deal, an undisclosed buyer acquired a three-story, 3,440-square-foot residential walk-up building in Brooklyn’s Fort Greene area for $2.5 million. The building features eight rental units, four of which are vacant. Zach Hering of Cleeman Realty represented the buyer and undisclosed seller in the transaction. In the second deal, an undisclosed seller sold a vacant mixed-use building located on St. Felix Street in Brooklyn for $3.5 million. The 4,600-square-foot property features five residential units and two floors of community space. The building has been vacant since it was built in 2007. Michael Cleeman of Cleeman Realty represented the seller, while Hering represented the undisclosed buyer in the deal.

August 9, 2017

Massachusetts Northeast Office

Kelleher & Sadowsky Negotiates Sale of 3,200 SF Office Property in Worcester, Massachusetts

by Amy Works August 9, 2017

WORCESTER, MASS. — Kelleher & Sadowsky has arranged the sale of a 3,200-square-foot office space located at 31 Harvard St. in Worcester. Private investor Kenneth Davis acquired the property for an undisclosed price and plans to convert the property into office and residential space when vacated by the current tenant, Family Service Organization of Worcester. Will Kelleher and David Cohen of Kelleher & Sadowsky brokered the transaction. The name of the seller was not released.

August 9, 2017

Connecticut Market Reports Northeast Northeast Market Reports Office

Despite Challenges, Connecticut’s Fairfield County Office Market Shows Improvement Potential

by Taylor Williams August 9, 2017

With employment representing one of the most critical factors in the health of the office sector, people naturally look to the unemployment rate as a key metric to quickly assess a given market. By this standard, Fairfield County should be thriving, with the unemployment rate at 4.4 percent in April 2017 — just under the 4.8 percent rate reached just prior to the recession. And yet, the availability rate in Connecticut’s largest office market stood at 24.5 percent at the end of the first quarter of 2017 — a far cry from the 15.2 percent rate seen at year-end 2007. There are two reasons for the discrepancy. First, it is far more accurate to look at office-using employment (information, financial, professional services and other industries) versus overall employment as a barometer. While office-using employment has rebounded approximately 4.0 percent since the depths of the latest recession, today’s count is still 8.4 percent lower than the latest peak. Second, a marked shift in the desired style of office and an upswing in remote working opportunities have led to reduced utilization rates in terms of square feet per employee. Today’s employers want to be in buildings that make their employees happy and …

August 9, 2017

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