Top Stories

Smithsonian Institution Pays $254M for New Headquarters in Washington, D.C.

by Alex Patton June 26, 2020

WASHINGTON, D.C. — The Smithsonian Institution has acquired the 318,557-square-foot West Tower of the Capital Gallery office property in Washington, D.C. for $254 million. The U.S. government entity, which operates 19 museums and nine research centers, will use the building as its new headquarters. Located at 600 Maryland Ave. S.W., the 10-story glass building makes up just over half of the two-building property, which totals 631,029 square feet of Class A office space. Smithsonian also acquired four floors of the eight-story East Tower. Smithsonian already leases office space within the building, and the acquisition is part of a plan to consolidate five office spaces in the Washington, D.C. area into a single location. The financial and administrative offices, currently located in Crystal City at 2011 Crystal Drive, in Arlington, Virginia, are the largest offices to move to the new administrative headquarters. Other offices to be consolidated include spaces at 955 L’Enfant Plaza S.W.; 425 Third St. S.W.; and 901 D St. S.W. The move is scheduled to begin early next year. “The reason for purchasing an office building near the National Mall is twofold — it is more efficient to have staff together in a central location and it is …

June 26, 2020

Development Georgia Office Southeast Top Stories

CDC to Develop 160,000 SF Research Lab in Atlanta

by Alex Tostado June 25, 2020

ATLANTA — The Centers for Disease Control and Prevention (CDC) will develop a 160,000-square-foot research lab at Roybal Campus, the organization’s main headquarters in Atlanta. The high-containment continuity lab (HCCL) will be a Biosafety Level-4 (BSL-4) facility, a designation reserved for the highest level of biological safety. The lab is part of the CDC’s 2025 master plan, which was finalized before the worldwide COVID-19 pandemic began. The Atlanta-based organization expects construction to begin in early 2021 and has tapped McCarthy Building Cos. Inc. as general contractor. Flad Architects, Page Southerland Page and WSP designed the HCCL. McCarthy, a St. Louis-based general contractor, has built 25 percent of the BSL-4 labs in the United States. The company also built the Emerging Infectious Diseases BSL-4 Laboratory on the Roybal Campus in 2005. In early 2018, the CDC petitioned Congress to allow for upgrades to be made at the facility. The development cost was not disclosed, although McCarthy entered into a $233 million contract with the U.S. government to construct the HCCL. “The facility has done quite well, but it runs constantly — 24 hours a day, seven days a week, 365 days a year,” Inger Damon, director of the division of high-consequence …

June 25, 2020

Northeast Pennsylvania Retail Top Stories

GNC Files for Chapter 11 Bankruptcy, Plans to Close Up to 1,200 Stores

by Kristin Harlow June 24, 2020

PITTSBURGH — Global health and wellness company GNC Holdings Inc. (NYSE: GNC) has filed for Chapter 11 bankruptcy. Over the past year, the company has executed a strategy to close underperforming stores, while investing further in alternatives to in-store sales, such as e-commerce. With the Chapter 11 filing, GNC expects to accelerate the closure of 800 to 1,200 stores. Pittsburgh-based GNC expects to use the bankruptcy process “to improve its balance sheet and capital structure while continuing to advance its business strategy, right-size its corporate store portfolio and strengthen its brands to protect the long-term sustainability of its business,” according to a press release from the company. Additionally, GNC has reached an agreement with its lenders and Harbin Pharmaceutical Group Holding Co. Ltd., an affiliate of GNC’s largest shareholders, for the sale of the company’s business. The sale transaction has a $760 million purchase price and “would be executed through a court-supervised auction process at which higher and better bids may be presented.” The company expects to either complete the sale or the bankruptcy process this fall. GNC’s largest vendor and a joint venture partner, IVC, is working with the company to ensure a continued supply of products. Looking ahead, …

June 24, 2020

Development Florida Mixed-Use Multifamily Southeast Top Stories

Metropica Development Completes 28-Story Residential Tower, First Phase of $1.5B Mixed-Use Project in South Florida

by John Nelson June 23, 2020

SUNRISE, FLA. — Metropica Development LLC, led by Joseph Kavana of K Group Holdings, has completed the first residential tower within Metropica, a $1.5 billion mixed-use project in the South Florida city of Sunrise. The 28-story ONE Metropica Residences comprises 263 condominiums. The City of Sunrise recently issued Metropica Development LLC a temporary certificate of occupancy (TCO) so that move-ins can begin. Metropica is situated adjacent to Simon’s Sawgrass Mills Mall and in close proximity to Interstates 75, 95 and 595, as well as the Florida Turnpike. As of this writing, 75 percent of the units at ONE Metropica Residences have been purchased by buyers hailing from the United States, Latin America, Europe and Asia. The condos range in size from 961 to 2,022 square feet, and the property’s remaining units are priced ranging from the $400,000s to the $700,000s. Buyers of the move-in-ready units can close on their purchase either in-person or virtually. “We are extremely proud to be delivering our first residential building to the market,” says Bernard Werner, president of Metropica Development LLC. Designed by architectural firms Oppenheim Architecture + Design and YOO Design Group, condominiums at ONE Metropica Residences include floor-to-ceiling glass windows, porcelain tile, smart …

June 23, 2020

Bristol-Myers-Squibb-Hopewell-New-Jersey

Acquisitions Healthcare Life Sciences New Jersey Northeast Office Top Stories

Lincoln Equities, H.I.G. Realty Acquire 1.2 MSF Life Sciences Campus in Hopewell, New Jersey

by Taylor Williams June 22, 2020

HOPEWELL, N.J. — A partnership between full-service real estate firm Lincoln Equities Group and New York City-based H.I.G. Realty Partners has acquired Princeton West Innovation Campus, a 1.2 million-square-foot life sciences property in Hopewell, New Jersey. The 433-acre development, which is located about seven miles from Princeton University, is the former campus of Bristol Myers Squibb (BMS). The New York City-based biopharmaceutical firm announced in late 2016 that it would gradually begin ceasing operations and shutting down the campus, according to centraljersey.com. The sales price was not disclosed, but the property flyer notes that BMS had invested more than $500 million in capital improvements to the campus prior to the sale. “Given the current public health crisis, we anticipate pharmaceutical and life sciences manufacturers to consider ‘reshoring’ and expanding operations in the United States,” says Joel Bergstein, president of Lincoln Equities. “This spacious, modern BMS campus — located in the center of ‘Einstein’s Alley’ in Central New Jersey — is a prime location for continued innovation and expansion.” Lance Bergstein, an acquisition and development officer at Lincoln Equities, pointed to the region’s skilled and qualified workforce as another key driving factor behind the acquisition. “New Jersey has one of the …

June 22, 2020

Development Multifamily New York Northeast Top Stories

Silverback Development Plans $250 Million Condominium Tower Project in Midtown Manhattan

by Alex Patton June 19, 2020

NEW YORK CITY — Silverback Development, a New York City-based developer, has released its plans for a $250 million condominium building in midtown Manhattan. Located at 131 E. 47th St., the 200-unit building will rise 500 feet and will feature 5,000 square feet of ground-floor retail space as well as several landscaping features and sky lounges. Silverback Development is undertaking the project in partnership with Hong Kong-based Hopson Development Holdings. The property is situated four blocks southeast of Rockefeller Center. The developers plan to include a technologically advanced management system, advanced digital security systems and fully integrated home automation. “The market in midtown Manhattan will see continued demand as it is at the epicenter of corporate headquarters, national landmarks, renowned cultural institutions and Michelin-starred eateries,” says Josh Schuster, managing principal at Silverback Development. Hopson Development Holdings (SEHK: 754) acquired the building site from New Empire Real Estate Development late last year. New Empire had previously planned to construct a 122-unit multifamily project on the site, but plans stalled after the existing buildings were demolished in 2016. The site has been vacant since then. Hopson has more than 70 commercial real estate projects, manages more than 10 large urban complexes, and …

June 19, 2020

Development Hospitality North Carolina Southeast Top Stories

White Lodging, Crescent Communities Top-Out 22-Story JW Marriott in Charlotte

by Alex Tostado June 18, 2020

CHARLOTTE, N.C. — White Lodging Services Corp. and Charlotte-based Crescent Communities have topped out the first JW Marriott in the Carolinas. The planned 381-room hotel is 22 stories and is located at 600 S. College St. in Uptown Charlotte. The hotel will be part of the Ally Charlotte Center a 742,000-square-foot mixed-use development featuring more than 30,000 square feet of retail space, a 12,000-square-foot public plaza and a 1,436-space parking garage. Ally Financial will occupy 400,000 square feet of office space and anchor the property, with move-in scheduled for second-quarter 2021. The hotel was first announced in November 2018, and the developers expect to deliver the JW Marriott in the first half of 2021. “The construction has remained on track as we adjusted to appropriately respond to the COVID-19 pandemic,” says Terry Dammeyer, president and CEO of investments and development at Merriville, Ind.-based White Lodging. The hotel will feature 34 suites, 15,000 square feet of event space, a pool, fitness center, spa, ballroom, rooftop terrace, Italian steakhouse and oyster bar. Guests rooms will include floor-to-ceiling windows, marble showers and 24-hour room service. In conjunction with the topping out, David Malmberg has been named general manager of the hotel upon opening. …

June 18, 2020

Development Mixed-Use Texas Top Stories

Marketplace Real Estate, Presidium Unveil Plans for 7 MSF Mixed-Use Project in Southeast Austin

by Kristin Harlow June 17, 2020

AUSTIN, TEXAS — Marketplace Real Estate Group and joint venture partner Presidium Group have unveiled the full plans for Velocity, a 314-acre, 7 million-square-foot, mixed-use project in southeast Austin. The co-developers expect to break ground in early 2021. Velocity will be built in phases over 10 to 15 years. Ultimately it will feature an H-E-B grocery store; a total of 2,683 multifamily units; 2.9 million square feet of office space comprising two corporate campuses, along with traditional office properties; 585,000 square feet of flex industrial and creative office space; 310,000 square feet of retail, restaurants and a movie theater; and three hotels. The various assets will surround a seven-acre central park. Financing is in place to move forward with the project’s roads and the first apartment complex, Presidium Velocity, which will take approximately 18 months to build. Formerly branded Velocity Crossing, the property will be situated at the southwest corner of State Highways 71 and 130 within an opportunity zone. The site is also within the city of Austin’s Desired Development Zone and a Triple Freeport Zone, meaning businesses operating within the site can be exempt from paying taxes on inventory that leaves the state of Texas within 175 days. …

June 17, 2020

California Company News Retail Top Stories Western

24 Hour Fitness Files for Chapter 11 Protection, Opts to Permanently Close 132 Stores

by John Nelson June 16, 2020

SAN RAMON, CALIF. — Fitness center retail chain 24 Hour Fitness has filed for Chapter 11 bankruptcy protection stemming from revenue losses during the COVID-19 pandemic. The San Ramon-based company expects to secure $250 million in debtor-in-possession financing, which is subject to court approval. The fitness chain has also announced its intention to permanently close 132 of its 300-plus gyms. In California alone, 24 Hour Fitness will shutter 41 locations, and in Texas another 26 will permanently close as the company will focus on reopening its other gyms across the country. “If it were not for COVID-19 and its devastating effects, we would not be filing for Chapter 11,” says Tony Ueber, CEO of 24 Hour Fitness. “With that said, we intend to use the process to strengthen the future of 24 Hour Fitness for our team and club members, as well as our stakeholders.” Although Ueber says the COVID-19 pandemic is the main culprit in the company’s struggles, the retailer’s debt load is also a contributing factor. Brad Umansky, president of Progressive Real Estate Partners, says that the retailer’s ownership group, including private equity firm AEA Investors, hampered 24 Hour Fitness from operating to the best of its ability …

June 16, 2020

Development Georgia Mixed-Use Multifamily Retail Southeast Top Stories

Hunt Underway on $166M Herndon Square Mixed-Use Project in Downtown Atlanta

by Jeff Shaw June 15, 2020

ATLANTA — Hunt Development Group has started construction of Phase I of Herndon Square, a 12-acre, mixed-use project in downtown Atlanta. Upon full build-out, the project will feature 700 residential units, 40,000 square feet of retail space and 20,000 square feet of community space open to the general public. The site is located on Northside Drive, approximately one mile north of Mercedes-Benz Arena, Philips Arena, Centennial Olympic Park and the other attractions in the heart of the city. The project, a redevelopment of the former Herndon Homes affordable community, will feature a mix of affordable and market-rate apartments and for-sale townhomes. Development costs are estimated at $166 million. Phase I of the project will include a five-story affordable housing building for seniors totaling 97 units, as well as an associated surface parking lot. Phase II will include a residential building and mixed-use building with a grocery store as the ground-floor anchor. Phase III will add another residential building and a second mixed-use building with ground-floor retail and apartments above, as well as the Herndon Green public outdoor area and a community supportive services building. Phase IV will add a final apartment building, while the fifth and final phase will add …

June 15, 2020

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