Office Beat

State Street finds new home on Boston's Lincoln Street

Boston-based State Street Corp. has signed a lease for the entire One Lincoln St., a 1 million sq. ft.-plus office tower under construction in Boston. State Street will begin occupancy of the 36-story, $350 million building in June 2003. Other terms of the lease were not released. A joint venture of Florham, N.J.-based Gale & Wentworth and Boston-based Columbia Plaza Associates is the developer of the project. Construction began in April 2000.

FTC finds fancy new digs for a crisp, cool $80M

The Federal Trade Commission (FTC) has signed a 10-year lease for 200,000 sq. ft. at 601 New Jersey Ave., a 9-story, 256,000 sq. ft. office building under construction in Washington, D.C. The lease is valued at more than $80 million. Lowe Commercial Development, a joint venture of Los Angeles-based Lowe Enterprises and New York-based Teachers Insurance Annuity Association, is the developer of the project. The FTC will move about 1,000 employees into the building's first seven floors when the $65 million project is completed in mid-2002. The building, which features 30,000 sq. ft. floor plates, is 80% leased.

TrizecHahn empire grows in both Chicago and D.C.

In recent separate deals, Toronto-based TrizecHahn Corp. has purchased three Class-A office buildings totaling 818,000 sq. ft. for a total of $180 million.

TrizecHahn bought 550 West Washington, a 16-story, 372,000 sq. ft. building in Chicago's West Loop submarket, for $77 million. Chicago-based Fifield Cos. was the buyer. The building was 92% occupied at the time of the sale. With the purchase, TrizecHahn's Chicago office portfolio now totals approximately 6 million sq. ft.

TrizecHahn also purchased 1225 Connecticut Ave., an 8-story, 224,000 sq. ft. office building in Washington, D.C., that is fully occupied by Ernst & Young, for $59 million. TrizecHahn did not release the name of the seller. The purchase expands TrizecHahn's Washington, D.C., portfolio to about 5 million sq. ft.

In the third transaction, TrizecHahn bought Two Ballston Plaza, an 11-story, 222,000 sq. ft. office complex in Arlington, Va., for $44 million. TrizecHahn did not release the name of the seller. The building is 97% occupied.

Mack-Cali bids adios to San Antonio towers

Koontz/McCombs Number Two Ltd., San Antonio, Texas, has purchased Tetco Towers, a 15-story, 256,137 sq. ft. office tower in San Antonio, for $21.9 million. Cranford, N.J.-based Mack-Cali Corp. was the seller. The building was 84.9% leased at the time of the sale. Mack-Cali plans to sell an additional 4.9 million sq. ft. of office assets in Dallas, Houston, San Antonio, Denver and Phoenix within the next two years.

CB Richard Ellis closes the book on Phoenix portfolio

The Phoenix office of Los Angeles-based CB Richard Ellis represented both the buyer and seller in the $97.7 million disposition of an 835,388 sq. ft. office portfolio in the Valley of the Sun. Dallas-based Presidio Investments acquired the portfolio from Washington, D.C.-based CarrAmerica Realty Corp.

Properties included in the Phoenix portfolio are: Camelback Lakes Corporate Center, a 202,292 sq. ft. office complex on Camelback Road; Concord Place, a 135,555 sq. ft. office building on 44th Street; Gateway IV, a 136,817 sq. ft. office also on 44th Street; Grove at Black Canyon, a 104,753 sq. ft. office property on Black Canyon Highway; Pointe Corridor Center IV, a 179,002 sq. ft. structure on 16th Street; and Highland Park, a 78,969 sq. ft. building on North Scottsdale Road in Scottsdale, Ariz. The buildings averaged 92% occupancy at the time of sale.

In other CB Richard Ellis news, Beverly Hills, Calif.-based UniLev Capital Corp. has purchased Phoenix Tower, a 34-story, 619,000 sq. ft. Class-A officer tower in Houston, for $66.5 million. CB Richard Ellis represented the seller, an undisclosed pension fund. CB Richard Ellis Investors is the investment manager of the fund. The building was 95% occupied at the time of the sale and was built in 1984. Bank United is the tower's major tenant.

HSA starts to dig in suburban St. Louis soil

Chicago-based HSA READ, the acquisition and development arm of HSA Commercial Real Estate, has begun construction of a 344,000 sq. ft. speculative office/warehouse facility in Hazelwood, Mo. Completion of the project is slated for this fall.

The facility is located in Park 370, a 450-acre business park in suburban St. Louis that is being developed by St. Louis-based TRiSTAR Business Communities. Los Angeles-based CB Richard Ellis is the exclusive leasing agent for the HSA READ property.

The office/warehouse facility is designed to hold a maximum of four tenants. The building will feature 30 ft. clear ceiling heights, an early suppression fast response (ESFR) sprinkler system, four drive-in ramps and 32 dock doors.

Harbor Group welcomes Indianapolis tower into fold

In partnership with an undisclosed institutional investor, Norfolk, Va.-based Harbor Group International (HGI) has acquired National City Center, a 16-story, 650,000 sq. ft. office property in Indianapolis, for $59.7 million. National Office Partners, a joint venture of Houston-based Hines Interests and Sacramento, Calif.-based California Public Employees Retirement System (CalPERs), was the seller.

Built in 1977, the property features twin office towers. It has five major tenants that occupy 85% of its space. Those tenants include the Indiana headquarters of National City Bank, Indianapolis-based Simon Property Group, The Supreme Court of Indiana, The Indiana Court of Appeals and MCI WorldCom.

Rubenstein gets project in Valley Creek rolling

In the Philadelphia suburb of Exton, Pa., The Rubenstein Co. has broken ground on Phase I of Valley Creek Corporate Center. Based in Philadelphia, Rubenstein, plans to deliver the entire first phase, which includes three buildings totaling 256,981 sq. ft., by the end of June 2002. Phase I consists of two, 4-story buildings containing 90,172 sq. ft. each and a 3-story, 76,637 sq. ft. building.

A partnership between Rubenstein and the National Electric Benefit Fund (NEBF), which is advised by New York-based CS Capital Management Inc., will own Phase I of Valley Creek Corporate Center. NEBF is a $9.5 billion pension fund jointly sponsored by the International Brotherhood of Electrical Workers, Washington, D.C., and the National Electric Contractors Association, Bethesda, Md.

In other Northeast office news, The Benenson Capital Co., New York, has purchased Morris Technology Center, a 256,750 sq. ft., Class-A office complex in Parsippany, N.J., for $61.6 million. Chatham, N.J.-based WP Commercial LLC was the seller. New York-based Sonnenblick-Goldman advised the seller in the deal.

The 3-story complex is located on 20 acres and features more than 900 parking spaces.

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