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Office Beat

Staubach Co. closes the deal for Phillips Petroleum

The financial services division of The Staubach Co., Dallas, completed a $104.6 million sale-leaseback for Phillips Petroleum's Alaska headquarters in Anchorage. Staubach secured the funds and structured a 20-year lease for the 616,406 sq. ft. facility, which allows Phillips to retain long-term control over the property. Phillips acquired the building when the company bought ARCO's Alaska properties in 2000.

Wolverine Equities, Staubach Co.'s investment affiliate, provided equity for the transaction. Staubach coordinated the debt financing with five separate institutions to close the transaction.

Opus West develops Arizona government office building

The Arizona Department of Administration (ADOA) and Environmental Quality (ADEQ) are relocating and consolidating Capitol Mall, Phoenix-based Opus West Corp.'s $65 million development located on 11 acres in downtown Phoenix. The Opus development will total 485,000 sq. ft., and is scheduled for occupancy in July 2002.

The project will include a 185,000 sq. ft., four-story building with ADOA as its primary tenant; and a 300,000 sq. ft., six-story building that will be anchored by ADEQ. An estimated 560 ADOA and 750 ADEQ employees will relocate to the new buildings. Remaining square footage in the two buildings will be occupied by smaller state government agencies.

According to state officials, this project is the beginning of a long-range plan to consolidate all state administrative operations and agencies, and represents the first two of 11 buildings planned for the area.

This development is on state-owned land and is leased by Capitol Mall LLC, a nonprofit corporation. Office space will be leased back to the state under lease-to-own terms. The project is funded by AAA-rated government office lease revenue bonds issued by the Industrial Development Authority and the city of Phoenix and is underwritten by US Bancorp/Piper Jaffray.

PaineWebber docks at Lefrak's Newport development

PaineWebber Inc.'s parent company, UBS AG, has signed a lease with Jersey City, N.J.-based Lefrak Organization for a 1.2 million sq. ft. office tower at Newport, a 600-acre mixed-use development on the Hudson River. PaineWebber will occupy the entire facility upon completion in 2002. New York-based Cushman & Wakefield brokered the transaction.

The building will be located at 480 Washington Boulevard and will form a campus-like setting with the other new Newport tower PaineWebber moved into in 2000. The PaineWebber transaction completes the leasing of Newport's 5 million sq. ft. first phase.

Beacon Capital completes $279 million sale to MIT

Beacon Capital Partners Inc. has completed the sale of Technology Square in Cambridge, Mass., for $278.8 million ($240 per sq. ft.) to the Massachusetts Institute of Technology (MIT). Beacon decided to sell the properties after receiving a number of unsolicited inquiries.

The property includes three buildings totaling 541,000 sq. ft., and four buildings under construction at 617,000 sq. ft. This is MIT's fifth property investment in the area.

Detroit's historic Griswold Place selects Trammell Crow

Downtown Detroit's historic Daniel Burnham building, Griswold Place, has selected Dallas-based Trammell Crow Co. to provide leasing services for its newly renovated Class-A office building. Griswold Place is located at 719 Griswold St.

Griswold Place, originally known as The Dime Saving Bank Building, was one of the last dominant buildings designed by Daniel Burnham. The Griswold Properties LLC purchased the building in 1999, and committed to restore the building to its original Class-A environment and perform a technological upgrade.

The $35 million renovation project is slated for completion by December.

Three-phase Rockville Metro Plaza finally under way

It took almost 10 years, but construction has finally started on Metro Plaza I, a 228,000 sq. ft. office building located in the heart of downtown Rockville, Md. The office property is the first of a three-phase, 600,000 sq. ft. office complex. Rockville Metro Center is a development of locally based Foulger-Pratt Cos., and is scheduled for total completion in June 2002.

Cary, N.C.-based software company SAS Institute Inc. will be the lead tenant of Phase I, and will occupy 50,000 sq. ft. once the building is complete. Winston Salem, N.C.-based Wachovia Bank N.A. is funding the project, and New York-based Insignia/ESG is leasing the development. Each building will feature parking, off-street covered loading, support retail services and finished streetscapes.

World Trade Center goes to Vornado

It took $3.25 billion to get the deal done and that is what Paramus, N.J.-based Vornado Realty Trust did. The New York and New Jersey Port Authority selected the REIT to take over the net lease of the 11 million sq. ft. World Trade Center in New York City.

Vornado beat out the joint-venture of Boston Properties and Brookfield Properties, as well as Silverstein Properties to attain leasing, managing and operating rights to the property for a 99-year term.

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