Top Stories

WASHINGTON, D.C. — Bethesda, Md.-based StonebridgeCarras and Chicago-based Walton Street Capital have sold Two Constitution Square to Northwestern Mutual for $305 million. The newly constructed building is located at 145 N St. within the Constitution Square mixed-use project. Its 589,000 square feet are completely leased to the U.S. General Services Administration (GSA) for use by the Department of Justice (DOJ). The tenant build-out is currently under way, with the DOJ expecting to take occupancy by late fall. The project is also registered for LEED-Platinum certification, which it anticipates receiving later this summer. “This is one of the highest quality buildings delivered to the Washington, D.C., office market in recent years, leased to the best credit tenant in the world for the next 15 years. These opportunities don't come around every day,” said Bill Collins, executive managing director of Cassidy Turley, which represented the sellers in the deal. Cambridge Property Group represented the buyer. In addition, Northwestern Mutual retained StonebridgeCarras to continue managing the property. Two Constitution Square is part of Phase I of the Constitution Square project. The phase also contains One Constitution Square, which a 329,251-square-foot office building that is also pre-leased to the GSA. In addition, Phase I …

MIDLAND, MICH. — Once seen as a fading industry, the automotive sector in the state of Michigan is seeing an economic resurgence in the field of next-generation automotive technology. No better evidence exists for this than the recent groundbreaking for Dow Kokam's new automotive battery production facility in Midland. The two-phase, approximately $600 million project will consist of the construction of an 800,000-square-foot, large-format battery manufacturing facility. The batteries will primarily be used to supply power to the next generation of hybrid-electric and electric vehicles. Phase I of the project will be able to produce batteries for 30,000 electric vehicles (assuming a 20kWh operating system) when fully operational and will employ 320 people full-time. The project has been supported by government on all levels. The state of Michigan is providing more than $180 million in tax incentives, and the Department of Energy awarded Dow Kokam $161 million in grant funding from the American Recovery and Reinvestment Act for Phase I of the project. Phase II of the project could begin as early as 2011. This $300 – $400 million phase will double the plant's capacity and add up to 400 additional employees. At full operation, which could come as early …

LEWISVILLE, TEXAS — Construction is complete for med fusion's new global headquarters in Lewisville. The $12 million project consisted of the conversion of the former Convergence Office Center located at 2501 State Highway 121 into a high-tech pathology office and clinical laboratory. The building was formerly an artillery development and production facility. Its conversion amounted to a complete renovation of the 172,000-square-foot building. New mechanical systems were installed, and the existing plumbing was upgraded to accommodate laboratory systems. Low-temperature, walk-in refrigeration units were installed, as was data room infrastructure. New office space was finished out. Finally, the clinical areas contain a biosafety Level 3 lab, a clean room lab, a biopsy review lab, a research and development lab, and a clinical trial area. Additional work completed during the 5-month project included the creation of a composite metal panel façade and a glass curtainwall, the development of ADA-approved parking spaces and an entrance, and the installation of water features and new landscaping. Scott + Reid was the project's general contractor. Additional members of the development team included construction manager CB Richard Ellis and RSP Architects. med fusion is a joint venture between Baylor Health Care System, Texas Oncology PA, Pathologists Biomedical …

MERRIFIELD, VA. — Retail developer Edens & Avant has broken ground for the development of Mosaic, a new mixed-use project located in the Washington, D.C., suburb of Merrifield. The 1.9 million-square-foot project will be situated on 31 acres near the intersection of interstates 66 and 495. The first phase of the project will contain 400,000 square feet of retail space, a movie theater, a 150-room boutique hotel, 60,000 square feet of Class A office space and 114 townhomes. The retail component of the project is already two-thirds leased. One of the anchors will be Target. In addition, art house cinema Angelika Film Center will open an eight-screen theater. The third tenant announced is MOM's organic market. The project will open in fall 2012. The urban-style project will contain several amenities designed to appeal to pedestrians. Walkways will be lined with trees, and the project will contain several public plazas. As part of the first phase, a 1-acre park is also being constructed. “We view our project as the ember of a much larger urban plan that will be the catalyst of economic and community development for a much larger district,” said Jodie McLean, president and CIO of Edens & Avant, …

FLORHAM PARK, N.J. — BASF Corp. is the latest tenant to be announced for The Green at Florham Park, a 268-acre master-planned community in Florham Park. The chemical company will occupy a new 325,000-square-foot office building that is being developed for it by the community's master developer, Rockefeller Group Development Corp. The new building, which will serve as BASF's North American headquarters, will be constructed to LEED-Platinum specifications. Construction is expected to begin in July, with completion slated for mid-2012. BASF will join a roster of notable tenants. The first is Atlantic Health, which is developing a four-story, 100,000-square-foot sports medicine facility know as the Atlantic Sports Health Institute. The medical facility will be situated adjacent to the project's other major tenant, the New York Jets. The pro football team is constructing a 27-acre campus that will contain the team's headquarters facilities as well as a 120,000-square-foot training center. The complex will also contain the Renaissance ClubSport by Marriott, a 250-room hotel that will feature a high-end spa and a 75,000-square-foot sports club. Additional development planned for The Green at Florham Park will include a total of approximately 800,000 square feet of office space as well as a 425-unit senior …

WASHINGTON, D.C. — The U.S. Department of Veterans Affairs has signed a long-term lease for 285,000 square feet of office space at 425 Eye St. in Washington. Paramount Group owns the seven-story, 370,000-square-foot structure and recently completed a renovation and repositioning program for it. The Class A building is currently under review for LEED-Gold certification. “In 425 Eye Street, we took a Class B property in the up-and-coming Mount Vernon Triangle neighborhood and executed a rigorous capital improvement program that positioned it among the most desirable and environmentally conscious Class A office facilities in the district.” said Albert Behler, president and CEO of Paramount, in a statement. Paramount is no stranger to green building. In 2006, the company developed, and later sold, the nearby 1331 L Street, which is also presently under review for LEED-Gold certification. In its hometown of New York City, the company's property at 900 Third Ave. is expected to be LEED certified by early 2011. — Coleman Wood

NEW YORK — CB Richard Ellis (CBRE) has completed the sale of the Tops Portfolio, a collection of six retail properties located in Upstate New York. The buyer was an entity controlled by Cofinance Inc., and the seller was a collection of entities controlled by Prudential Real Estate Investors and Developers Diversified Realty. The portfolio contains a total of 703,201 square feet of retail space in six neighborhood retail centers. Tops Markets is the anchor at each one. Five of the properties go by the name of Tops Plaza and are located in Tonawanda, Arcade, Hamlin, Avon and Elmira. The sixth property goes by the name Youngman Plaza and is located in Tonawanda. The brokerage team for the deal includes Jeffrey Dunne and Steven Bardsley with CBRE's New York Institutional Group, and Robert Mahoney and Christian Williams with the firm's Chicago office. The team represented the seller. Tops Markets currently operates approximately 140 locations in western and central New York. It was purchased by Morgan Stanley in December 2007. — Coleman Wood

ISELIN, N.J. — Construction is complete for Metrotop Plaza, a nine-story, 255,000-square-foot office building located in Iselin. The speculative, Class A building adjoins an existing, 80,000-square-foot building that is fully leased to tenants that include Cisco Systems and New Horizons. Amenities at the building include a full-service cafeteria with a private dining area, an 8,000-square-foot tenant event space on the top floor, a fitness center with locker rooms and showers, and covered parking. The building also contains redundant electricity from two substations, two generator pads for tenants, OC3 fiber tap and 550 tons of supplemental cooling. Atlantic Realty owns Metrotop Plaza. Jones Lang LaSalle, which is also a tenant at the adjoining building, is handling leasing and marketing efforts. The leasing team is led by Kevin Carton and Eric Sobel. — Coleman Wood

KANSAS CITY, MO. — Kansas City, Mo.-based Entertainment Properties Trust (NYSE: EPR) has acquired a 12-property movie theater portfolio for approximately $124 million. The portfolio contains 192 screens in Colorado, California, Indiana and Texas. All of the theaters are occupied by Cinemark U.S.A. under triple-net leases. In addition, AMC Entertainment plans to renew three of the four leases it has coming due for EPR-owned theaters. The three theaters, all located in Southern California, include Mission Valley 20 in Orange County, Promenade 16 in Woodland Hills and Ontario Mills 30 in Ontario. EPR has already received a signed letter of intent from another operator for the property AMC will be vacating, the Grand 24 in Dallas. Finally, EPR has entered into a contract for the disposition of the former Havens Winery in Napa, Calif. The winery will be sold for $6.5 million in a deal that is expected to close by the end of the second quarter. “We are excited about expanding our existing relationship with Cinemark, and we look forward to growing the relationship in the future,” said David Brain, CEO of EPR, in a statement. “At the same time, we are pleased to receive the expected extensions on three …

WESTLAND, MICH., AND SANTA FE, N.M. — Fort Worth, Texas-based Trademark Property Co. recently partnered with a private equity fund to acquire two enclosed regional malls in Michigan and Santa Fe. The fund purchased the properties, and Trademark will oversee their management and redevelopment. The first property is Westland Shopping Center, a 1.06 million-square-foot property located in the Detroit suburb of Westland. The center's anchors include Macy's, Kohl's, Sears and JC Penney. Additional tenants include Panera Bread, Longhorn Steakhouse, Forever 21, American Eagle Outfitters, PacSun, Hot Topic and Express. The second property is Santa Fe Place, a 571,238-square-foot shopping center located in Santa Fe. The mall is the only regional shopping center in northern New Mexico. Its anchors include Dillard's, JC Penney and Sears. Additional tenants include Hollister, Gap, New York & Co. and Victoria's Secret. While Trademark is still determining future plans for the two shopping centers, it has mentioned its desire to reposition and redevelop Santa Fe Place. The company has experience in redeveloping malls, which can be seen in its ongoing redevelopment of La Palmera in Corpus Christi, Texas. — Coleman Wood