By Louis Suarez, Misty Bowe and Brian Bruggeman, Colliers The Twin Cities medical real estate market has experienced many different phases over the last few years, reflecting the region’s journey toward post-pandemic recovery. Currently, this sector is experiencing a notable shift that is fueled by rising vacancy rates for on-campus hospital properties contrasted with a low vacancy rate of 4.9 percent for off-campus medical buildings. This shift is significantly influenced by the push to outpatient surgery centers, ongoing financial pressures and consolidation trends. Additionally, experts in this region are predicting a scarcity of new medical building supply in 2024, which is expected to exert ongoing pressure on rental rates for existing medical office space, despite the stabilization of interest rates that is anticipated to come later this year. As of the fourth quarter of 2023, the current construction pipeline consists of a mere 84,000 square feet, all of which is spoken for with no additional supply projected to come to market in the next year, which is a nearly 80 percent decrease year-over-year. The dramatic increase in interest rates, rising construction costs and capital constraints have pushed asking rents for new proposed projects to well above $30 per square foot …
WOODBRIDGE, VA. — The IDI Group Cos. (IDI) and its development partners have broken ground on Belmont Logistics, a $110 million industrial campus located in Woodbridge, roughly 25 miles southwest of Washington, D.C. According to the developer, the project marks the only new industrial project along Northern Virginia’s I-95 corridor so far this year. Upon completion, the development will feature three tilt-up concrete buildings totaling 416,000 square feet situated on 36.6 acres. Additionally, the development will include 540 car parking spaces, 40 trailer parking spaces and 55,000 square feet of additional storage space. Belmont Logistics will be developed in two phases, with the first phase comprising a 110,000-square-foot warehouse on 9.5 acres. Completion of the first phase is scheduled for the end of this year. Delivery of the campus in its entirety is scheduled for 2026. Offering connectivity to I-95, the location is situated roughly 30 miles from Dulles International Airport and 20 miles from Reagan National Airport. In addition to IDI, the joint venture developing the campus includes landowners ACD Precast LLC and the Carosi family. RW Murray is the general contractor for the project, which MGMA designed. Keystone National Group is providing an undisclosed amount of financing for …
IRVING, TEXAS — Locally based developer KDC has topped out the 850,000-square-foot office campus in Irving’s Las Colinas district that will serve as the new regional headquarters for Wells Fargo. The campus will consist of two 10-story, 400,000-square-foot buildings and a connecting parking garage, as well as various open green spaces, all on a 22-acre site. The San Francisco-based bank is consolidating its regional real estate footprint and expects to employ about 3,000 people at the campus, inclusive of the hiring of 650 new staffers. Completion is slated for late 2025. Project partners include architect Corgan, civil and landscape engineer Kimley-Horn and general contractor Austin Commercial.
IRVING, TEXAS — Newmark has arranged an undisclosed amount of construction debt for TriStar Business Park, a 173,680-square-foot industrial project in Irving. The development will comprise two buildings with 32-foot clear heights, 100-plus trailer parking stalls, eight-plus dock-high doors, 130- to 140.5-foot truck court depths and ESFR sprinkler systems. Dustin Volz, Stephen Bailey, Dom Espinosa, Zach Riebe and William Hairston of Newmark arranged the debt through an undisclosed regional bank on behalf of the developer, a joint venture between Hopewell Development and MBK Industrial Properties. Newmark also structured the joint venture between the two companies last fall. Colliers is the leasing agent for TriStar Business Park.
ALLEN, TEXAS — Gillett Commercial, a developer with offices in Texas and California, is nearing completion of a 71,920-square-foot industrial flex project in the northeastern Dallas suburb of Allen. Allen Exchange consists of three buildings that were developed on a speculative basis, the largest of which spans 50,864 square feet, sits on 3.6 acres and includes office and showroom space. The other two buildings total 10,500 square feet. Raymond Construction is the general contractor for the project, which is slated for an April delivery. Citadel Partners is marketing the development for sale and/or lease.
PLEASANTON, TEXAS — Avensis Energy has signed an 18,000-square-foot industrial lease in Pleasanton, about 40 miles south of San Antonio. According to LoopNet Inc., the building at 206 Oil Road was built on 4.9 acres in 2014 and totals 27,000 square feet. Carlos Marquez and Brian Heines of Partner Real Estate represented the landlord, Four Seasons Business Park II Ltd., in the lease negotiations. Sonit Seth with The Seth Brothers Team represented the tenant.
CLEVELAND, TEXAS — Locally based brokerage firm Oxford Partners has negotiated the sale of a 16,000-square-foot industrial building located at 2024 County Road 388 in Cleveland, about 45 miles northeast of Houston. Matt Rogers of Oxford Partners represented the seller, BE Plastics Inc. in the transaction. Tim Larson of KW Commercial represented the undisclosed buyer.
QUINCY, MASS. — Locally based investment firm FoxRock Properties has acquired 1200 Crown Colony, a 236,491-square-foot office building in Quincy, a southern suburb of Boston. The building is located within a larger development known as Crown Colony Office Park, which is situated adjacent to a public transit station and the I-93 and U.S. Route 3 interchange. Amenities include a newly renovated lobby, fitness center, exercise lawn, coffee bar and a full-service café. The seller and sales price were not disclosed.
ALBANY, N.Y. — KeyBank Real Estate Capital has provided a $14.2 million Fannie Mae loan for the refinancing of 930 on Broadway, an 81-unit workforce housing community in Albany. The four-story building sits on a 1.5-acre site and houses one-, two- and three-bedroom units, as well as 12,155 square feet of commercial space. Half the residences are reserved for households earning 80 percent or less of the area median income. Dirk Falardeau and Mark Flanders of KeyBank arranged the debt on behalf of the borrower, Redburn Development Partners.
BEDFORD, MASS. — A partnership between Redgate, Optimum Asset Management and AEW Capital Management has delivered Riverwalk Labs, a 168,000-square-foot life sciences and manufacturing project in Bedford, about 20 miles northwest of Boston. The developers converted a former office building into a facility with 20,000-square-foot lab and office suites, as well as four separate tenant lobbies and multiple loading docks. Ci Design served as the project architect, and J. Calnan & Associates served as the general contractor.