It looks like the worst may be over for the Tampa Bay office market, and 2013 is shaping up to be the best year for investment sales and leasing activity since before the start of the recession. The health of the local office market is directly tied to job growth, and professional and business services employment has increased over the past few years. With additional job growth forecast in 2013, tenant expansions could develop as the year progresses. Many tenants weighing moves to larger spaces in the near term will monitor available spaces and advance timetables in the event vacancy in their target locations falls rapidly. For owners of Tampa Bay office properties, the news comes at a great time, as they should see some relief from high vacancies in 2013. That said, additional tenant demand will be needed to make a significant dent in the overall vacancy rate and support more substantive rent growth. Overall, the Tampa/St Petersburg office market ended the fourth quarter of 2012 with a vacancy rate of 13.6 percent, which was down from the previous quarter. Net absorption totaled 356,991 square feet, which was a vast improvement over the negative 390,098 square feet recorded in …
NASHVILLE — Music City Center, a 1.2 million-square-foot convention center, will open its doors Sunday, May 19 in Nashville. The $585 million project spans six city blocks and includes a modern exterior glass curtain wall and limestone panels. The center features 60 meeting rooms, two ballrooms, 32 loading docks and a garage for 1,800 vehicles. In terms of design, the facility's undulating roof “represents the rolling hills of Tennessee and the sound waves that can be overheard by musicians playing in clubs on Broadway,” according to architecture firm tvsdesign. tvsdesign, Tuck-Hinton and Moody Nolan designed the facility, and Bell/Clark/Harmony provided construction services. A grand finale event will be held May 20 with concerts by Sheryl Crow and Phil Vassar, among others.
STAFFORD, VA. — JMC Holdings LLC has acquired 800 Corporate Drive in Stafford from the Silver Cos. for $40 million. The 135,732-square-foot Class A office property is located at Quantico Corporate Center, about 600 yards from Marine Corps Base Quantico. The deal marks the New York City-based investment company's first venture outside of the New York market. The property is fully occupied by seven tenants that will remain in place under their current lease agreements, and JMC has retained Cushman & Wakefield to handle the property management. Tenants include defense contractor QinetiQ North America, which occupies the first and second floors. Kameron Zitelli of Berko & Associates represented the buyer in the transaction. The seller was self-represented by David Newman, along with Joe Pfahler of Coldwell Banker Elite.
LARGO, MD. — Morgan Properties and its equity partner DRA Advisors LLC have formed a joint venture partnership to acquire Northampton Apartments, a 620-unit apartment community in Largo. The property was originally built in two phases in 1977 and 1987 by the Artery Group and is located minutes from the Capital Beltway. Amenities include tennis courts, a swimming pool and two playground areas. Jones Lang LaSalle represented the seller, Equity Residential, in the transaction.
CHARLOTTE, N.C. — Griffin Capital Essential Asset REIT has acquired the UTC Aerospace Systems headquarters building in Charlotte for $39.1 million. The single-story, 198,898-square-foot office building is fully leased to United Technologies Corp. The building recently underwent a $5.9 million renovation. The property is situated in the 65-acre Coliseum Centre office development, located minutes from Charlotte-Douglas International Airport. UTC Aerospace Systems is an aerospace and defense products supplier, including components used in commercial aircraft, helicopters and international space programs.
NEW ORLEANS — Gulf State Real Estate Services LLC has been selected to oversee the leasing and management of a new $8 million medical office complex near East Jefferson Hospital in the Metairie suburb of New Orleans. Innovative Construction Services is constructing the 35,000-square-foot property, which is slated for occupancy in fall 2013. Approximately 50 percent of the building will be owner-occupied and the remaining 17,500 square feet will be leased to other medical-related practices.
ASHEVILLE, N.C. — Tremont Realty Capital LLC and New England Development have teamed up to transform the Biltmore Square Mall in Asheville into the city's first outlet center. The joint venture plans to build a 325,000-square-foot retail center, located off I-26 at 800 Brevard Road, which is scheduled for completion in 2014. The nearest outlet center is 80 miles away, according to a New England Development press release. The property was originally developed in 1989 as a regional mall anchored by Belks and Dillard's. Tremont acquired the property in 2010.
PEMBROKE PINES, FLA. — A joint venture between Jeffrey A. Anderson Real Estate Inc. and an institutional investor has acquired The Shops at Pembroke Gardens for $188 million. The 395,000-square-foot property houses more than 70 shops, including Banana Republic, Bebe, Sur La Table and Victoria's Secret. The property, currently 90 percent leased, is also home to some of the highest grossing restaurants in Broward County, including Brio Tuscan Grill and Cheesecake Factory. Danny Finkle, Jim Batjer, Luis Castillo and Robert Saracco of HFF represented the seller, Duke Realty, in the transaction.
ATLANTA — Crocker Partners has acquired Atlantic Center Plaza, a 23-story office tower in Atlanta's Midtown submarket. A joint venture between Crocker and the Distressed Real Estate Opportunities Fund, managed by Siguler Guff & Co. LP, recapitalized the 500,000-square-foot building. Crocker now owns 1.7 million square feet in the Atlanta market. Last year, the firm acquired the 18-story Prominence building in Buckhead and an adjacent 6.4-acre parcel for a proposed 700-unit apartment project. Crocker had previously owned Atlantic Center Plaza, but had sold it in 2005. It is one of several assets the firm previously owned and recently re-acquired. No brokers were involved in the deal.
DALTON, GA. — Engineered Floors LLC, a Dalton-based carpet manufacturer, will invest $450 million and create 2,000 new jobs during the next five years through the construction of new facilities in northwest Georgia. The company will build manufacturing and distribution plants in Whitfield County and a manufacturing facility in Murray County. “The exemption of sales tax on energy in the manufacturing process that the Legislature put in place under Gov. Deal's leadership during the 2012 legislative session makes a significant difference to manufacturers looking to grow and succeed,” says Robert E. Shaw, chairman and CEO of Engineered Floors. The Georgia Department of Economic Development (GDEcD) partnered with Dalton-Whitfield County Joint Development Authority and Dalton-Whitfield Chamber of Commerce to manage the expansion. Carl Campbell, regional project manager at GDEcD, led the expansion project for the state. Georgia Quick Start, a workforce training program, will provide assistance to the company.