Trendwatch
August Biggest Deals
Aug 1, 2008
Deal Trends
Atlanta
Biggest Lease
Mitsubishi Digital Electronics America Inc. inked a long-term lease for 265,000 SF of industrial and distribution space in Duke Realty Corp.’s Park 85 at Braselton at 625 Braselton Pkwy. Demetri Koutrouvelis, Laurent Myers, Adam Singer and Ted Haley of Studley Inc. represented the tenant. Brian Sutton represented the landlord internally. Braselton-area rental rates average $3 PSF triple-net-lease, according to Colliers Spectrum Cauble.
Biggest Sale
Wells Real Estate Investment Trust II Inc. acquired the two-building, 955,000-SF Lindbergh Center at the intersection of Piedmont Road and Lindbergh Drive in Buckhead in a sale-leaseback with AT&T Services Inc. Sources say the transaction is likely 2008’s largest single-asset Atlanta sale. Keith Willby represented the buyer internally, and Will Yowell, Lee Asher and CB Richard Ellis Inc.’s global corporate services team represented AT&T, which will continue to occupy the property under a new lease until 2020.
Biggest Development
No major developments were reported.
Boston
Biggest Lease
JPMorgan Investor Services, an affiliate of JPMorgan Chase Bank N.A., will take 100,000 SF at 451 D St. in the Seaport District. The space will house more than 300 employees to be hired over the next five years and will replace the firm’s current offices at 73 Tremont St. Gil Dailey, Kevin Hanna, David Martel and John Cefaly of Cushman & Wakefield Inc. represented the tenant. William Barrack, William Collins and Benjamin Heller of Colliers Meredith & Grew represented the owners, The Beal Cos. and Rockpoint Group L.L.C. Rents in the waterfront district average $50 PSF, according to Jones Lang LaSalle Inc.
Biggest Sale
Boston College bought a 188-unit apartment building at 2000 Commonwealth Ave. for $67M from a joint venture of Tishman Speyer Properties, Lehman Brothers Inc. and Bank of America Inc. Cushman & Wakefield Inc. represented the sellers and identified the buyer.
Biggest Development
No major developments were reported.
Chicago
Biggest Lease
Spencer Stuart, an executive-search consulting firm, has signed a letter of intent to lease 100,000 SF at 353 N. Clark St. Mesirow Financial is developing the 45-story office tower in the River North area of Downtown. Bill Rogers, Jeff Liljeberg and Elaine Melonides of Jones Lang LaSalle Inc. represented the tenant, which plans to occupy three-and-a-half floors to accommodate 350 employees. The move expands its current space at 401 N. Michigan Ave. by 20,000 SF and is slated to occur in 2010.
Biggest Sale
No major sales were reported.
Biggest Development
No major developments were reported.
Dallas
Biggest Lease
SpeedFC Inc. leased 270,000 SF of distribution space at Northgate Distribution Center in Northeast Dallas. Industrial space in the area rents for $4.50 PSF.
Biggest Sale
Tarrant County College District acquired Radio Shack Riverfront Campus, an 875,000-SF, five-building office complex, from KanAm Grund for $238M. Jones Lang LaSalle Inc. represented the buyer.
Biggest Development
Deloitte L.L.P. announced that it plans to build a $300M learning-and-leadership-development center at Hillwood’s Circle T Ranch in the suburb of Westlake. Construction will begin in 2009, and the center is slated to open in 2011.
Houston
Biggest Lease
Transocean Inc. signed a lease for 95,000 SF of additional office space at Greenway Plaza. The firm now occupies the entire Four Greenway Plaza and part of Five Greenway Plaza. Brad Fricks and Preston Young of Stream Realty Partners L.P. represented the landlord, Crescent Real Estate Equities L.P. Jay Bonano of Studley Inc. represented the tenant. Rents in the area average $20 PSF.
Biggest Sale
No major sales were reported.
Biggest Development
Finger Cos. broke ground on the first Downtown Houston luxury rental apartment tower in more than 40 years. The 37-story One Park Place features 346 residences and will rise next to the new 12-acre Discovery Green park. The tenant plans to take occupancy in March 2009.
Los Angeles
Biggest Lease
Fox Interactive Media signed a 12-year lease with Lincoln Property Co. and ASB Real Estate Investments for 421,000 SF of office space in Horizon at Playa Vista for a total consideration of $350M. Steve Walbridge of Cushman & Wakefield Inc. represented Lincoln Property, and Peter Capuciati, David Gordon and Kelly Givens of Studley Inc. represented the tenant.
Biggest Sale
A joint venture of DE Shaw Group and Woodridge Capital L.L.C. purchased The Westin Century Plaza Hotel and Spa, a 726-key hotel in Century City, from Sunstone Hotel Investors Inc. and Hyatt Hotels Corp. for $366.5M.
Biggest Development
Construction began on the first phase of The Campus at Playa Vista, a $1.2B, 1.6 MSF office complex in West Los Angeles. Tishman Speyer Properties is developing the project on behalf of its joint-venture partner, Walton Street Capital L.L.C. The initial segment will contain 325,000 SF and is targeted for completion during the fourth quarter of 2009.
New York City
Biggest Lease
AIG subleased 800,000 SF from The Goldman Sachs Group Inc. at The Moinian Group’s 180 Maiden Lane, a 41-story, 1 MSF tower in Downtown Manhattan. The company plans to move to a planned 2.1 MSF tower nearby on West Street in 2009. CB Richard Ellis Inc. represented the tenant, and Newmark Knight Frank represented Goldman Sachs. Class A Downtown sublease space commands $50.62 PSF, according to Cushman & Wakefield Inc.
Biggest Sale
The Abu Dhabi Investment Council, a sovereign fund based in the United Arab Emirates, paid $800M for a 90 percent stake in the Chrysler Building, the iconic Art Deco office tower at Midtown Manhattan’s 405 Lexington Ave. TMW Real Estate Group, a German fund controlled by Prudential Real Estate Investors, sold its 75 percent share of the property, and Tishman Speyer Properties sold a 15 percent share. Tishman Speyer will retain a 10 percent share and will continue to manage the property.
Biggest Development
A joint venture led by Stonebridge Realty Advisors Inc. plans to develop a $90M, 220-key select-service hotel on West 37th Street between Eighth and Ninth avenues in Midtown Manhattan.
San Francisco
Biggest Lease
Google Inc. has inked a $60M, five-year lease agreement with Morgan Stanley to retain its 200,000-SF office at Hills Plaza, a two-building complex in the South Beach area. The Mountain View, Calif.-headquartered Google began subleasing the space from Gap Inc. last year in a deal that expires in 2010. Its direct lease with Hills Plaza owner Morgan Stanley ends in 2015. Cornish & Carey Commercial/ONCOR International represented Google, and Jones Lang LaSalle Inc. represented Morgan Stanley.
Biggest Sale
An affiliate of CIM Group Inc. is snapping up five Oakland, Calif., properties totaling 1.7 MSF from Brandywine Realty Trust for $412.5M. Four of those properties—1901 Harrison St., 1333 Broadway, 2101 Webster St. and One Kaiser Plaza, known as The Ordway—were 88.7 percent occupied as of May 31. 2100 Franklin St., which recently came online, is unleased. The transaction, scheduled to close Aug. 31, also includes the seller’s condominium interest in a parking garage at 2353 Webster St., a 15-year purchase option for Two Kaiser Plaza and 150 parking spaces that CIM will lease for The Ordway’s tenants. Lazard Freres & Co. served as the seller’s financial advisor, and CB Richard Ellis Inc. helped market the properties.
Biggest Development
The second phase of Avalon Walnut Creek at Contra Costa Centre, a $400M transit-oriented mixed-use development next to the Bay Area Rapid Transit Pleasant Hill station, has broken ground. The first phase expanded the station’s parking garage, and Phase II encompass 422 apartments, 85 percent of that affordable housing. Plans for future phases encompass 100 condominium units, 35,000 SF of local service-retail space, a civic-use area, a 19,400-SF business conference center and 270,000 SF of office space. AvalonBay Communities Inc., the California county of Contra Costa, Millennium Partners and the Bay Area Rapid Transit District form the public-private venture behind the project.
South Florida
Biggest Lease
Greenberg Traurig L.L.P. inked a 15-year, 150,000-SF lease at MDM Development Group and MetLife’s Met 2 office tower. The lease rate is estimated to be in the middle to high $40-PSF range. The building is under construction and the firm anticipates a 2010 move-in.
Biggest Sale
No major sales were reported.
Biggest Development
Florida East Coast Realty Inc. is moving forward with plans for its $1.8B One Bayfront Plaza at 100 S. Biscayne Blvd. in Miami. The two 70-story towers will include an 850-key convention hotel and 120,000 SF of exhibition and meeting space, as well as office and retail space. Terra Architecture is designing the project, which is aiming for LEED silver certification. The developers plan to break ground in 2012.
Washington, D.C.
Biggest Lease
Time Warner Cable Inc. signed a 10-year, 195,000-SF lease in South Lake at Dulles Corner on Route 28 in Herndon, Va. Meredith LaPier and Brad Davis of CB Richard Ellis Inc. represented the tenant. Rob Faktorow, Terry Reiley and Dan Fall of CB Richard Ellis represented the landlord, Brandywine Realty Trust, which was also represented internally by Janet Davis and Mike Cooper. Reports peg the rent at $32 PSF.
Biggest Sale
KBS Real Estate Investment Trust purchased the three-building, 482,000-SF Tysons Dulles Plaza at Spring Hill Road in Tysons Corner, Va., from Vornado Realty Trust/Charles E. Smith for $153M. Paul Collins, Bill Collins, Drew Flood and James Cassidy of Cassidy & Pinkard Colliers represented the seller. Robin Burke represented the buyer internally.
Biggest Development
The Army Corps of Engineers reached a tentative agreement with Trammell Crow Co. to develop the $500M, 1.7 MSF Fort Meade Technology Center office complex at Fort Meade in Anne Arundel County, Md. The first building is slated to break ground in 2009 for a 2010 completion. CB Richard Ellis Inc. will handle the leasing.
Deal Trends
Atlanta
Biggest Lease
Mitsubishi Digital Electronics America Inc. inked a long-term lease for 265,000 SF of industrial and distribution space in Duke Realty Corp.’s Park 85 at Braselton at 625 Braselton Pkwy. Demetri Koutrouvelis, Laurent Myers, Adam Singer and Ted Haley of Studley Inc. represented the tenant. Brian Sutton represented the landlord internally. Braselton-area rental rates average $3 PSF triple-net-lease, according to Colliers Spectrum Cauble.
Biggest Sale
Wells Real Estate Investment Trust II Inc. acquired the two-building, 955,000-SF Lindbergh Center at the intersection of Piedmont Road and Lindbergh Drive in Buckhead in a sale-leaseback with AT&T Services Inc. Sources say the transaction is likely 2008’s largest single-asset Atlanta sale. Keith Willby represented the buyer internally, and Will Yowell, Lee Asher and CB Richard Ellis Inc.’s global corporate services team represented AT&T, which will continue to occupy the property under a new lease until 2020.
Biggest Development
No major developments were reported.
Boston
Biggest Lease
JPMorgan Investor Services, an affiliate of JPMorgan Chase Bank N.A., will take 100,000 SF at 451 D St. in the Seaport District. The space will house more than 300 employees to be hired over the next five years and will replace the firm’s current offices at 73 Tremont St. Gil Dailey, Kevin Hanna, David Martel and John Cefaly of Cushman & Wakefield Inc. represented the tenant. William Barrack, William Collins and Benjamin Heller of Colliers Meredith & Grew represented the owners, The Beal Cos. and Rockpoint Group L.L.C. Rents in the waterfront district average $50 PSF, according to Jones Lang LaSalle Inc.
Biggest Sale
Boston College bought a 188-unit apartment building at 2000 Commonwealth Ave. for $67M from a joint venture of Tishman Speyer Properties, Lehman Brothers Inc. and Bank of America Inc. Cushman & Wakefield Inc. represented the sellers and identified the buyer.
Biggest Development
No major developments were reported.
Chicago
Biggest Lease
Spencer Stuart, an executive-search consulting firm, has signed a letter of intent to lease 100,000 SF at 353 N. Clark St. Mesirow Financial is developing the 45-story office tower in the River North area of Downtown. Bill Rogers, Jeff Liljeberg and Elaine Melonides of Jones Lang LaSalle Inc. represented the tenant, which plans to occupy three-and-a-half floors to accommodate 350 employees. The move expands its current space at 401 N. Michigan Ave. by 20,000 SF and is slated to occur in 2010.
Biggest Sale
No major sales were reported.
Biggest Development
No major developments were reported.
Dallas
Biggest Lease
SpeedFC Inc. leased 270,000 SF of distribution space at Northgate Distribution Center in Northeast Dallas. Industrial space in the area rents for $4.50 PSF.
Biggest Sale
Tarrant County College District acquired Radio Shack Riverfront Campus, an 875,000-SF, five-building office complex, from KanAm Grund for $238M. Jones Lang LaSalle Inc. represented the buyer.
Biggest Development
Deloitte L.L.P. announced that it plans to build a $300M learning-and-leadership-development center at Hillwood’s Circle T Ranch in the suburb of Westlake. Construction will begin in 2009, and the center is slated to open in 2011.
Houston
Biggest Lease
Transocean Inc. signed a lease for 95,000 SF of additional office space at Greenway Plaza. The firm now occupies the entire Four Greenway Plaza and part of Five Greenway Plaza. Brad Fricks and Preston Young of Stream Realty Partners L.P. represented the landlord, Crescent Real Estate Equities L.P. Jay Bonano of Studley Inc. represented the tenant. Rents in the area average $20 PSF.
Biggest Sale
No major sales were reported.
Biggest Development
Finger Cos. broke ground on the first Downtown Houston luxury rental apartment tower in more than 40 years. The 37-story One Park Place features 346 residences and will rise next to the new 12-acre Discovery Green park. The tenant plans to take occupancy in March 2009.
Los Angeles
Biggest Lease
Fox Interactive Media signed a 12-year lease with Lincoln Property Co. and ASB Real Estate Investments for 421,000 SF of office space in Horizon at Playa Vista for a total consideration of $350M. Steve Walbridge of Cushman & Wakefield Inc. represented Lincoln Property, and Peter Capuciati, David Gordon and Kelly Givens of Studley Inc. represented the tenant.
Biggest Sale
A joint venture of DE Shaw Group and Woodridge Capital L.L.C. purchased The Westin Century Plaza Hotel and Spa, a 726-key hotel in Century City, from Sunstone Hotel Investors Inc. and Hyatt Hotels Corp. for $366.5M.
Biggest Development
Construction began on the first phase of The Campus at Playa Vista, a $1.2B, 1.6 MSF office complex in West Los Angeles. Tishman Speyer Properties is developing the project on behalf of its joint-venture partner, Walton Street Capital L.L.C. The initial segment will contain 325,000 SF and is targeted for completion during the fourth quarter of 2009.
New York City
Biggest Lease
AIG subleased 800,000 SF from The Goldman Sachs Group Inc. at The Moinian Group’s 180 Maiden Lane, a 41-story, 1 MSF tower in Downtown Manhattan. The company plans to move to a planned 2.1 MSF tower nearby on West Street in 2009. CB Richard Ellis Inc. represented the tenant, and Newmark Knight Frank represented Goldman Sachs. Class A Downtown sublease space commands $50.62 PSF, according to Cushman & Wakefield Inc.
Biggest Sale
The Abu Dhabi Investment Council, a sovereign fund based in the United Arab Emirates, paid $800M for a 90 percent stake in the Chrysler Building, the iconic Art Deco office tower at Midtown Manhattan’s 405 Lexington Ave. TMW Real Estate Group, a German fund controlled by Prudential Real Estate Investors, sold its 75 percent share of the property, and Tishman Speyer Properties sold a 15 percent share. Tishman Speyer will retain a 10 percent share and will continue to manage the property.
Biggest Development
A joint venture led by Stonebridge Realty Advisors Inc. plans to develop a $90M, 220-key select-service hotel on West 37th Street between Eighth and Ninth avenues in Midtown Manhattan.
San Francisco
Biggest Lease
Google Inc. has inked a $60M, five-year lease agreement with Morgan Stanley to retain its 200,000-SF office at Hills Plaza, a two-building complex in the South Beach area. The Mountain View, Calif.-headquartered Google began subleasing the space from Gap Inc. last year in a deal that expires in 2010. Its direct lease with Hills Plaza owner Morgan Stanley ends in 2015. Cornish & Carey Commercial/ONCOR International represented Google, and Jones Lang LaSalle Inc. represented Morgan Stanley.
Biggest Sale
An affiliate of CIM Group Inc. is snapping up five Oakland, Calif., properties totaling 1.7 MSF from Brandywine Realty Trust for $412.5M. Four of those properties—1901 Harrison St., 1333 Broadway, 2101 Webster St. and One Kaiser Plaza, known as The Ordway—were 88.7 percent occupied as of May 31. 2100 Franklin St., which recently came online, is unleased. The transaction, scheduled to close Aug. 31, also includes the seller’s condominium interest in a parking garage at 2353 Webster St., a 15-year purchase option for Two Kaiser Plaza and 150 parking spaces that CIM will lease for The Ordway’s tenants. Lazard Freres & Co. served as the seller’s financial advisor, and CB Richard Ellis Inc. helped market the properties.
Biggest Development
The second phase of Avalon Walnut Creek at Contra Costa Centre, a $400M transit-oriented mixed-use development next to the Bay Area Rapid Transit Pleasant Hill station, has broken ground. The first phase expanded the station’s parking garage, and Phase II encompass 422 apartments, 85 percent of that affordable housing. Plans for future phases encompass 100 condominium units, 35,000 SF of local service-retail space, a civic-use area, a 19,400-SF business conference center and 270,000 SF of office space. AvalonBay Communities Inc., the California county of Contra Costa, Millennium Partners and the Bay Area Rapid Transit District form the public-private venture behind the project.
South Florida
Biggest Lease
Greenberg Traurig L.L.P. inked a 15-year, 150,000-SF lease at MDM Development Group and MetLife’s Met 2 office tower. The lease rate is estimated to be in the middle to high $40-PSF range. The building is under construction and the firm anticipates a 2010 move-in.
Biggest Sale
No major sales were reported.
Biggest Development
Florida East Coast Realty Inc. is moving forward with plans for its $1.8B One Bayfront Plaza at 100 S. Biscayne Blvd. in Miami. The two 70-story towers will include an 850-key convention hotel and 120,000 SF of exhibition and meeting space, as well as office and retail space. Terra Architecture is designing the project, which is aiming for LEED silver certification. The developers plan to break ground in 2012.
Washington, D.C.
Biggest Lease
Time Warner Cable Inc. signed a 10-year, 195,000-SF lease in South Lake at Dulles Corner on Route 28 in Herndon, Va. Meredith LaPier and Brad Davis of CB Richard Ellis Inc. represented the tenant. Rob Faktorow, Terry Reiley and Dan Fall of CB Richard Ellis represented the landlord, Brandywine Realty Trust, which was also represented internally by Janet Davis and Mike Cooper. Reports peg the rent at $32 PSF.
Biggest Sale
KBS Real Estate Investment Trust purchased the three-building, 482,000-SF Tysons Dulles Plaza at Spring Hill Road in Tysons Corner, Va., from Vornado Realty Trust/Charles E. Smith for $153M. Paul Collins, Bill Collins, Drew Flood and James Cassidy of Cassidy & Pinkard Colliers represented the seller. Robin Burke represented the buyer internally.
Biggest Development
The Army Corps of Engineers reached a tentative agreement with Trammell Crow Co. to develop the $500M, 1.7 MSF Fort Meade Technology Center office complex at Fort Meade in Anne Arundel County, Md. The first building is slated to break ground in 2009 for a 2010 completion. CB Richard Ellis Inc. will handle the leasing.
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