LaSalle completes the sale of Chicago's 30 North LaSalle Chicago-based LaSalle Partners Investment Banking Group has completed the sale of 30 North LaSalle Street, a 925,950 sq. ft. Class-A office building in Chicago's Loop, to Equity Office, also of Chicago. The 44-story building is 98% leased to tenants such as the city of Chicago, D'Ancona & Pflaum, and Rivkin, Radler & Kramer.
PM Realty Group adds 1 million sq. ft. to Houston portfolio Houston-based PM Realty Group has added four buildings, totaling approximately 640,000 sq. ft., to its leasing and management portfolio in Houston. LPC Realty Advisors I Ltd., acting as asset manager for Teachers Retirement System of the State of Illinois, hired PM Realty to lease and manage the Wells Fargo Northborough Building and the 10700 Richmond Building. And PM Realty took over leasing responsibilities for Park Central Plaza at 1111 North Loop West. PM will also manage and lease the 1919 North Loop West Building.
Equity Office Properties continues its buying spree In three recent deals, Chicago-based Equity Office Properties added approximately 4.6 million sq. ft. of office properties to its portfolio at a total price of $574.7 million. Acquisitions include an 11-property portfolio in suburban Philadelphia from affiliates of the Acorn Development Corp. for $144.7 million, two office buildings and a parking facility in New Orleans from Columbus American Properties LLC for $140 million, and a six-building office portfolio, located in Philadelphia, Dallas and Houston, from The Prudential Insurance Co. of America for $290 million.
TrizecHahn acquires 100% interest in Newport Tower At an expected purchase price of $159 million, Toronto-based TrizecHahn Corp. has been chosen as the buyer of a 100% interest in Newport Tower, a 1 million sq. ft. office building in Jersey City, N.J. Newport Tower is a 37-story, Class-A tower that is 98% leased. Closing of the transaction is anticipated to occur later this month.
Faison wins MONY's 1.2 million sq. ft. Atlanta office portfolio Mutual of New York (MONY) Real Estate Investment Management has appointed Charlotte, N.C.-based Faison's Atlanta office as manager and lessor of its 1.2 million sq. ft. Atlanta office portfolio. The portfolio consists of four multibuilding office complexes -- Ashwood, Lakeside, Plaza 400 and Northchase -- all located in the Central Perimeter and Northwest submarkets. Occupancies for all are above 95%.
Cousins forms joint venture for renovation, development Atlanta-based Cousins Properties Inc. has announced the formation of a joint venture to invest in a recently renovated 278,000 sq. ft. office tower in Atlanta's Buckhead market and a new 415,000 sq. ft., 21-floor development on an adjacent site. Cousins will form the joint venture, called Cousins Loret Venture LLC, with an investment partnership advised by Bethesda, Md.-based Stoneridge Associates, which owns the existing building and the development site. Cousins will own a 50% interest in the two projects, representing a $66 million gross investment.
Regent Partners begins work on Atlanta's Tower Place 200 In another Buckhead project, construction has begun on Atlanta-based Regent Partners' 260,000 sq. ft. Tower Place 200. The 13-story speculative office building is scheduled to open in fall 1998. Construction financing is being provided by First Union National Bank of Georgia, and Atlanta-based Metric Constructors is the general contractor.
New cap rate/pricing data provided by PIX This month, we're featuring the first of what promises to be quarterly updates on the state of office market cap rates and prices nationwide. This data is provided to us by a company called Property Information Exchange (PIX), based in New York. PIX is an innovative information service that links qualified institutional investors with an ever-expanding pool of investment-grade properties totaling over $3 billion. This data is an empirical measure of what more than 700 of the largest real estate investors and advisory firms are chasing.
Based on the latest quarterly numbers through July 30, 1997, office market cap rates had increased to 10.38% nationwide, which compares to a 10.18% rate in July 1996, and 10.21% in January 1997.
On the office pricing front, PIX data indicates that the average price per sq. ft. has increased to $86.03, as compared to $79.82 last July and $83.62 in January 1997.
Please contact Assistant Editor Tracy Heath at [email protected] if you have information about office happenings or trends.