Office

Office, Multifamily Developers Capitalize on Growth in Twin Cities’ West End

by Haisten Willis June 25, 2015

You can hardly open the local paper lately without reading that “Downtown is hot right now; urban living is great.” Yes, downtown is booming. The suburbs are also riding the wave of new mixed-use development and could see more success. It may surprise some, but office vacancy rates and rental rates along I-394 and I-494 rival, and sometimes trump, downtown Minneapolis. The message is clear: convenience has value. The idea of a mixed-use neighborhood where people are living, working, shopping and having fun in one place is a relatively new concept to the Twin Cities. Minneapolis no longer turns into a ghost town after 6 p.m., but many people don’t want to live downtown. They find it too congested and far from work, with little green space and few parking options. If only there was a way to have the vitality of a mixed-use neighborhood without the drawbacks of the concrete jungle, right? Today that question is answered all around the metro area. West End’s Advantages In particular, the West End region of the Twin Cities shares that same long-term vision. With a strong office market long in place, Duke Realty’s addition in 2009 of The Shops at West End, …

June 25, 2015

Market Reports Office Washington Western Western Market Reports

Seattle’s CBD Gains in Popularity With Office Users

by Nellie Day June 16, 2015

The Seattle office market has been a shining example of strength and solidity. Compared to the U.S. job rate, which expanded by 2.4 percent over the past year to drop the unemployment rate to just 5.5 percent, the Seattle-Tacoma-Bellevue Metropolitan Statistical Area is looking good. Seattle added jobs at a rate of 3.1 percent in the first quarter of 2015. It also saw employment gains in every category. The unemployment rate remained in line with the U.S. rate at 5.5 percent. Construction led all job sectors with 12.6 percent growth, followed by professional and business services at 4.2 percent. The Seattle Central Business District office market showed continued improvement as the overall vacancy rate declined by 2.8 percentage points on a year-over-year basis. Asking rents continued to climb in all submarkets with an overall increase of 4 percent, while Class A rents increased by 5.6 percent. Making tech giants feel at home is nothing new to the Seattle area. The largest lease of the past quarter was Facebook’s 274,000-square-foot deal at Dexter Station. With a planned delivery of May 2015, Dexter Station will be a 10-story, 345,992-square foot office building located in the flourishing Lower Queen Anne/Lake Union submarket. Facebook …

June 16, 2015

HFF Arranges $556M Construction Loan for Full-Block Manhattan Office Tower

by Nellie Day June 5, 2015

NEW YORK – HFF has arranged a $556 million construction loan for a full-block office development on Manhattan’s Park Avenue. The 47-story tower will be located at 425 Park Ave. in Midtown’s Plaza District. L&L Holding Company and GreenOak Real Estate are developing the 670,000-square-foot project. This will be the first full-block office development on Park Avenue in nearly 50 years, according to HFF. The new project will feature flexible floor plate sizes and layouts. All floors will contain views of Midtown. Central Park will be visible to floors 24 and higher. The development is also situated near Rockefeller Center. Project amenities include a private garage for tenants with a special car lobby, a private building entrance and a chauffeurs’ lounge. It will also contain a space dedicated to amenities on the 26th floor that will feature outdoor areas with views of Central Park, a wellness center, and dining, meeting and conference rooms. The lobby will contain an atrium with floor-to-ceiling glass. The building’s 56th Street and Park Avenue corner will boast a high-end restaurant, while the 55th Street and Park Avenue corner will house retail and gallery space. HFF’s Mike Tepedino, Michael Gigliotti and Jennifer Keller arranged the construction …

June 5, 2015

Market Reports Office Texas Texas Market Reports

Las Colinas, Far North Dallas And Richardson/Plano Stand Out in Hot Market

by Haisten Willis June 5, 2015

Dallas/Fort Worth has experienced unprecedented growth over the past few years, and we have all the fundamentals in place to continue this growth. Since 2005, we have added more than 600,000 jobs to the region. That’s a whopping increase of 21 percent! The current outlook is for growth to continue at these levels. In fact, by 2030 population in our region is expected to hit 9 million, an increase of 2.1 million new residents. From a real estate perspective, these fundamentals will fuel demand across all property types for the foreseeable future. More importantly, DFW has evolved into one of the most balanced economies in the U.S. and has created the “perfect storm” for our continued, steady growth. In addition to our central location, key drivers include our diverse employment base, deep roots in technology, low cost of doing business, pro-growth philosophy and affordable housing. For a comparison to the rest of the country, office absorption in Dallas has paced ahead of most U.S. markets in the last few years. In the first quarter of 2015, Dallas made up almost 30 percent of the national net absorption among the 50 largest U.S. markets JLL tracks. While a large proportion of …

June 5, 2015

DHS Breaks Ground on $835M Bio, Agro-Defense Facility Near Topeka

by Nellie Day May 29, 2015

TOPEKA, KAN. — The U.S. Department of Homeland Security (DHS) has broken ground on the $835 million National Bio and Agro-Defense Facility (NBAF) in the Topeka submarket of Manhattan. The 574,000-square-foot facility will be located in the Kansas City Animal Health Corridor, the largest concentration of animal health companies in the world, according to DHS. The 29-acre site will house advanced research, diagnostic testing and validation, countermeasure development and diagnostic training departments. The countermeasure development team will work to develop vaccines and anti-viral therapies at the facility, while the diagnostic training department will focus on high-consequence livestock diseases. “The NBAF laboratory will provide the nation with cutting-edge, state-of-the-art lab capabilities and help protect our food supply and the nation’s public health,” says Jeh Johnson, secretary of Homeland Security. “NBAF addresses a serious vulnerability. The economic impact of a bio agricultural threat — deliberate or natural — could have a substantial effect on the food supply of this nation and have serious human health consequences. We will soon be able to ensure availability of vaccines and other rapid response capabilities to curb an outbreak,” continues Johnson. “With the NBAF, our nation will have the first Bio Level 4 lab facility of …

May 29, 2015

$100M Office, Hotel Development Coming to Nashville Suburb

by Nellie Day May 22, 2015

BRENTWOOD, TENN. — GBT Realty Corp. has announced plans to build a $100 million mixed-use development in the Nashville suburb of Brentwood. The project, called Crestview at The Summit, will be situated at the peak of The Summit, which offers the highest unobstructed views of the city. Crestview at The Summit will feature a Class A office complex with up to 480,000 square feet, in addition to a 40,000- to 60,000-square-foot hotel with a signature restaurant. The build-to-suit facility will include two office towers with about 1,400 parking spaces and on-site walking trails. The 15-acre site is situated off an I-65 interchange. “Brentwood is one of the most desirable markets in the region,” says Ben Owenell, GBT’s co-managing director of the company’s new Diversified Development Division, which targets urban mixed-use and lifestyle centers, medical office buildings, urban infill residential communities and corporate campuses. “With very little Class A office currently available in this growing submarket, this site is an opportunity for a company to gain tremendous visibility but also offer its employees a community with a high standard of living, recreational amenities and quality public school system,” adds Owenell. Crestview at The Summit is the inaugural development of GBT’s new …

May 22, 2015

Market Reports Office Texas Texas Market Reports

Demand for Energy, and Houston Office Product, Will Remain

by Haisten Willis May 22, 2015

The real estate capital markets are a funny thing — one minute you’re up and the next you’re down. The debt market starts making investors bring more equity to the table, reserves tied to energy-related tenancy are mandated, the four-letter word “recourse” is thrown around and more scrutiny is placed on every detail. No one wants to be laughed out of a committee meeting for trying to push through a multi-million dollar loan on an office building in the Energy Capital of the World. The same holds true in the equity market. Return requirements that fluctuate along the risk/return spectrum haven’t changed, but underwriting scrutiny has. Market rent growth has been scaled back or even gone negative, energy-related tenancy is being given a lower retention ratio or being downsized, downstream tenancy is more favorable than upstream tenancy, mark-to-market value-add strategies have been replaced with income preservation strategies, etc. Individually, these various reactions in the debt and equity market don’t have a huge impact on values. Combined, they have a material impact. You would think that this environment would bring about great opportunities for investors with a long-term, bullish view on Houston’s office market. Instead, most owners will be patient, electing …

May 22, 2015

California Office Western

M&M Promotes Hessam Nadji to Senior Executive Vice President

by Nellie Day May 20, 2015

LOS ANGELES — Hessam Nadji has been promoted to senior executive vice president of Marcus & Millichap. Nadji joined the firm in 1996. He served as the chief strategy officer and senior vice president. Nadji is responsible for Marcus & Millichap’s specialty brokerage divisions. He also oversees the firm’s research, advisory services and marketing departments. In addition to these duties, Nadji will now oversee the firm’s mortgage brokerage operations and certain corporate functions. He is based in Walnut Creek, Calif. Prior to joining Marcus & Millichap, Nadji was senior vice president at Grubb & Ellis. He received a Bachelor of Science degree in information management and computer science from City University in Seattle.

May 20, 2015

Michigan Midwest Office

Friedman Brokers Sale of 11,558 SF Office Building in Southfield, Mich.

by Danielle Everson May 15, 2015

SOUTHFIELD, MICH. — Friedman Integrated Real Estate Solutions has brokered the sale of an 11,558-square-foot office building in Southfield. The property is located at 18860 W. 10 Mile Road. The seller, Beeson Commercial, sold the building to Dr. Noah Levi, Dr. Oleg Krivichkin and Dr. Randall Shaw, who are expanding their adjacent Dental Practice into a full-service Dental Clinic. Dan Verderbar and Robert Moon of Brokerage Friedman represented both the seller and the buyer in the transaction.

May 15, 2015

Loans Midwest Minnesota

Grandbridge Finances $6M Debt and Equity for Property in Fridley, Minn.

by Danielle Everson May 14, 2015

FRIDLEY, MINN. — Grandbridge Real Estate Capital has provided a $4.1 million first mortgage and raised additional equity funds from a regional equity fund secured by a 150,000-square-foot office/tech/warehouse property in Fridley. Minneapolis-based Dave Rasmusen of Grandbridge originated the debt and equity. Grandbridge worked with the borrower, an affiliate of Hoyt Properties, and lender to structure the transaction to meet the borrower’s objectives. The client sought to purchase the value-add property, which was 60 percent leased. Grandbridge brought $4.1 million of non-recourse debt from a local bank and approximately $2 million of equity from a regional equity fund to complete the purchase.

May 14, 2015

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