— By Leah Masson, senior director, Cushman & Wakefield — The real estate landscape in the Puget Sound region is shaped by a dynamic contrast between the Eastside and Downtown Seattle. The Eastside continues to thrive, particularly with its robust tech activity. Major developments, such as the Eight, Skanska’s 540,000-square-foot project, is nearing full occupancy, underscoring the area’s strong demand. OpenAI is actively seeking space on the Eastside, with expectations of more artificial intelligence groups to follow. It’s worth noting that the Eastside is not plagued by the safety issues that have been a concern for Downtown Seattle. The anticipated 2025 opening of the light rail is set to drive even more growth in the area. Downtown Seattle is also experiencing an uptick in leasing activity, with active tenants expanding in terms of both square footage and lease term lengths. Since 2021, professional services groups, such as law and engineering firms, have been the primary drivers of leasing, but there is now a welcome return of tech companies to the Seattle market. New AI-focused tenants are beginning to emerge, moving out of coworking spaces and seeking permanent office locations in the city. However, Downtown Seattle continues to face significant challenges, …
ROUND ROCK, TEXAS — Seattle-based developer and operator Sabey Data Centers has completed a 430,000-square-foot facility in the northern Austin suburb of Round Rock. Known as SDC Austin, the two-building development is situated on a 40-acre site and has the capacity to produce up to 84 megawatts of power. The facility is designed to support liquid cooling and high-density computing environments with capabilities of up to 200 kilowatts per cabinet, and one such user, the Texas Advanced Computing Center, has already committed to the campus. The project was first announced in spring 2022.
NEW BRAUNFELS, TEXAS — AOG Living, the Houston-based developer and operator formerly known as Allied Orion Group, has begun leasing The Sophie, a 282-unit multifamily project in the northeastern San Antonio suburb of New Braunfels. The Sophie features one-, two- and three-bedroom units. The amenity package comprises a pool, fitness center, business center/cyber lounge, clubhouse with a gaming area, outdoor grilling stations, dog park, courtyard biergarten, sky lounge and package lockers. Rents start at $1,365 per month for a one-bedroom apartment.
HOUSTON — Dallas-based Holt Lunsford Commercial Investments (HLCI) will develop a 254,000-square-foot industrial project in northwest Houston. The site at 11010 Jones Road spans 23 acres. The development will comprise a 204,800-square-foot front-load building and a 50,000-square-foot rear-load building, as well as designated trailer parking space and five acres for outdoor storage. Construction is scheduled to begin in early 2025. A tentative completion date has not yet been announced.
GEORGETOWN, TEXAS — Marcus & Millichap has brokered the sale of Georgetown Mini Storage, a 144-unit self-storage facility located on the northern outskirts of Austin. The facility was built in 1983 and spans 26,400 net rentable square feet of non-climate-controlled space. Jon Danklefs and Douglas Diffie of Marcus & Millichap represented the undisclosed seller in the transaction. Danklefs also procured the buyer, New York-based Merit Hill Capital.
NEW YORK CITY — Private equity firm Kriss Capital and New York-based investment group Corigin have provided $205 million in construction financing for a multifamily project that will be located at 26 E. 35th St. in Manhattan’s Nomad neighborhood. The building will rise 18 stories and house 137 condos. The financing consists of a $180 million senior loan from Kriss Capital and its Israeli partner, Klirmark Capital, and a $25 million mezzanine loan from Corigin. Max Hulsh, Max Herzog, Marko Kazanjian and Andrew Cohen of Institutional Property Advisors, a division of Marcus & Millichap, arranged the financing on behalf of the borrower, The Continuum Co. Completion is slated for 2027.
BRIDGEPORT, CONN. — Regional brokerage firm Northeast Private Client Group (NEPCG) has arranged the $9.9 million sale of Bridgeport Commons Apartments, an 86-unit multifamily property in southern coastal Connecticut. The two-building property was originally built between 1967 and 1970 and is located directly across the street from Bridgeport Hospital. The unit mix comprises nine studios, 73 one-bedroom apartments and four two-bedroom residences. Brad Balletto, Rich Edwards and Robert Paterno of NEPCG represented the seller and procured the buyer, both of which requested anonymity, in the transaction.
FREEHOLD, N.J. — Marcus & Millichap has brokered the $4.7 million sale of a retail property in Freehold, an eastern suburb of Trenton, that is leased to 7-Eleven on a triple-net basis. The property consists of a 3,100-square-foot convenience store and a 12-pump fuel station. Alan Cafiero, Brent Hyldahl and Seth Goldberg of Marcus & Millichap represented the seller in the transaction. Mark Krantz and Derrick Dougherty, also with Marcus & Millichap, represented the buyer. Both parties were locally based investors that requested anonymity.
NEWARK, DEL. — CBRE has negotiated a 93,000-square-foot industrial lease in Newark, Del. The tenant is an undisclosed third-party logistics company, and the space is located within Building D of First State Logistics Park, a three-building, 1 million-square-foot industrial development that sits on a 149-acre site. Paul Touhey and Dan Rattay of CBRE, along with internal agents Mark Glagola and Tim Shaw, represented the landlord, Chicago-based Logistics Property Co., in the lease negotiations. The deal brings the park to about 75 percent occupancy.
MELVILLE, N.Y. — Northwell Health, the state’s largest provider, has signed a 19,162- square-foot office and healthcare lease in the Long Island community of Melville. Northwell plans to operate a pharmacy center and administrative offices within the 55,686-square-foot building at 40 Melville Park Road, which is owned by locally based firm Simone Development Cos. Darren Leiderman of Colliers represented Northwell in the lease negotiations. Simone Development was self-represented.