CHICAGO — Mesa West Capital has provided a joint venture led by local development firm Sterling Bay with $82.6 million in debt to recapitalize 121 West Wacker Drive, a 41-story office building in downtown Chicago’s Central Loop. The financing included a first mortgage loan originated out of Mesa West’s open-ended Mesa West Core Lending Fund, and mezzanine debt provided by Pearlmark Real Estate on behalf of Pearlmark Mezzanine Realty Partners, IV, LP. The office tower recently underwent an extensive renovation, including a new lobby and retail level, updated building systems and a new tenant amenity floor overlooking the Chicago River.
UNIVERSITY CITY, MO. — Urban Sprouts, a local child development center, has acquired an office and warehouse space for $405,000 in University City, an inner-ring suburb of St. Louis. The property is located at 6757 Olive Blvd. The site was the former manufacturing space for McCarthy Spice & Blends. Renovation of the new Urban Sprouts building will take place in two phases and is slated for completion by August 2017. The first $2.2 million phase will include 11 classrooms with two art studio study rooms plus an interactive kitchen for cooking. The second $1.1 million phase will include classrooms for college-level courses that Urban Sprouts will host for St. Louis Community College. Additional renovations include a natural play area, as well as an outdoor garden. Brendan O’Brien of Hilliker Corp. represented the seller, Edward and Margaret McCarthy, in the transaction. Rome West Realty’s agent Susan Sauer represented the buyer.
SECAUCUS, N.J. — Harbor Group International has completed the sale of an office building located at 100 Plaza Drive in Secaucus. Howard Hershkovich, a private investor from Brooklyn, purchased the property as part of a 1031 exchange for $62 million. The four-story 264,973-square-foot office building is fully leased to a variety of tenants, including NBA Entertainment and Scholastic. Jeffrey Dunne, Kevin Welsh and Brian Schulz of CBRE Institutional Properties represented the seller in the deal.
STAMFORD, CONN. — Colliers International has brokered the sale of an office building located at 750 E. Main St. in Stamford. Darien, Conn.-based Forstone Capital acquired the 103,367-square-foot office property for an undisclosed sum in an off-market transaction. The 10-story building features six floors of office space and four levels of structured parking. On-site amenities include food services, a fitness center, conference facility and security. Al Gutierrez, Enzennio Mallozzi and Cynthia Foster of Colliers represented the undisclosed seller and procured the buyer in the transaction.
CARROLLTON, TEXAS — Bradford Commercial Real Estate has negotiated a 63,055-square-foot office lease in Carrollton. In a relocation and expansion of its headquarters, Revolution Retail Systems LLC has backfilled 63,055 square feet of a 99,524-square-foot office/warehouse space in Valwood Industrial Park. The property, known as Valwood 33, is located at 1400 Valwood Parkway and includes 40,000 square feet of built-out office space. Bradford’s Brian Pafford and Jason Miller represented the landlord, RCI Valwood LLC, in the transaction. Revolution Retail has expanded by 53,699 square feet with its relocation from 1400 Hutton Drive, which is located at the rear of its new headquarters office and distribution center. Bob Luttrell of Jackson Cooksey Inc. represented the tenant, which designs and builds hardware and software cash-management solutions.
ARLINGTON, TEXAS — Goodstar JV has sold a two-suite medical office building in central Arlington to a private investor. The 4,800-square-foot building is located on nearly a half acre at 1022 W. Mitchell St., just west of the University of Texas at Arlington. Wayne Burgdorf of Coldwell Banker Commercial Advisors DFW represented Goodstar JV, an entity owned by a group of retired dentists. Dr. Chia-Ming Lee, a dentist, occupies the smaller of the two suites. The larger space, totaling 2,700 square feet, is vacant and will be retooled to become general office space. The single-story building, developed in 1974, features 30 parking spaces. David Keal of Aubrey Keal Commercial Real Estate represented the local buyer.
FORT WORTH, TEXAS — JLL has brokered a 10,183-square-foot office lease on behalf of Cotten Schmidt & Abbott LLP. The Fort Worth-based law firm will be relocating to the top floor of the Pier 1 Imports Building located at 100 Energy Way. JLL’s Pat McDowell negotiated the lease on behalf of Cotten Schmidt & Abbott, and Todd Burnette, also of JLL, represented Pier 1 Imports.
One of the newest trends in Phoenix office leasing is the spur in technology and creative space requirements, especially for tenants moving in from Northern and Southern California. These companies are searching for a more favorable market — one with lower labor costs and rental rates, more affordable housing, an educated workforce from which to draw, less traffic and an overall higher quality of life — and the Phoenix area fares well comparatively. I expect this trend to continue, especially in the downtown markets of Phoenix, Tempe and Scottsdale. Strong leasing activity throughout the Phoenix market this year resulted in robust absorption, with Class B product leading the way. There are numerous large tenants currently in the market seeking to lock up space, which will keep demand elevated throughout the remainder of the year. Healthcare and financial services industries are committing to the market, especially with larger-scale operations centers. Parking needs for these users are 6:1000 and greater. Tempe remains a hot spot for development, with two new high-profile speculative projects underway — the Grand at Papago Park Center (213,055 square feet) and 2100 Rio Salado (102,819 square feet). Two new buildings were completed this quarter at Tempe’s Marina Heights …
LEE’S SUMMIT, MO. — Parrot Properties and Block & Company have received approval by the Lee’s Summit City Council for the previously announced Village at View High, a mixed-use development in Lee’s Summit. The city council approved a conceptual development plan and a change in zoning classification for the site to change it from district single-family residential to district planned mixed use. Situated on 71 acres, the $225 million development will feature 310 apartments, a 13-acre seniors housing facility, a 250,000 square feet of retail space, more than 100,000 square feet of office/medical space and entertainment and dining options. The project team includes Realtors, Engineering & Solutions, Sullivan Law, TranSystems, Hirst & Associates Architects, Bushyhead LLC, Boothe Architects and Humphrey, Farrington & McClain PC.
PLANO, TEXAS — Venture Commercial’s David Schnitzer has represented the firm of R. E. Lopez and Associates LP in the acquisition of a 16,000-square-foot office building in Plano for a relocation and expansion of its law offices. The two-story building, named The 550, is located at 550 E. 15th St. at the southeast quadrant of 15th Street and North Central Expressway. Lopez will occupy the top floor and will lease out the bottom floor of the building. Brandon Crow and Wilson Stafford of EDGE Realty Partners represented the seller, 4 Green House Holdings I LLC.