Office News

Faison-Stone inks Big D's largest 1998 lease at1700 Pacific Faison-Stone Inc. has leased 231,748 sq. ft. at 1700 Pacific to Bank One, Texas, ending the year with the largest new lease transaction in Dallas' CBD.

The lease brings the total number of sq. ft. leased in the 1.3 million sq. ft. building to more than 431,000 sq. ft. in 1998 and brings the occupancy rate to 80%. Bank One will use seven floors for support staff functions.

1700 Pacific is owned and operated by the partnership of Donaldson, Lufkin & Jenrette and Faison-Stone, a subsidiary of Charlotte, N.C.'s Faison.

TrizecHahn/JBG team up for metro D.C. mixed-use TrizecHahn Office Properties and The JBG Cos. have announced plans to build Waterview, a 1 million sq. ft. office and hotel complex overlooking the Potomac waterfront in Rosslyn, Va.

The project includes a 600,000 sq. ft., 24-story office building and a 340,000 sq. ft., 28-story four-star hotel/residential building with retail and restaurants on the ground and plaza levels.

Groundbreaking is scheduled for the second quarter of 2000 with delivery by summer 2002. Waterview is being designed by Jim Freed of Pei Cobb Freed & Partners.

National Office Partners buys San Francisco building National Office Partners L.P., a joint venture between Hines and the California Public Employees' Retirement System (CalPERS), has acquired the 505 Montgomery building in San Francisco's financial district from Mitsui Fudosan (U.S.A.) Inc. and the Empire Group.

Designed by Skidmore Ownings & Merrill, Mitsui Fudosan and the Empire Group developed the 335,000 sq. ft., 24-story building in 1988. The building is 100% leased.

505 Montgomery is the fourth office acquisition made by National Office Partners in the past five months.

Prime Group scores Midwest trifecta Chicago's Prime Group Realty Trust has announced two office acquisitions and an option on another worth a total of $432.5 million.

Prime recently closed on the $94.5 million purchase of 33 West Monroe, a 28-story, 846,000 sq. ft. Class-A office tower in Chicago's downtown office market. The property sold for $111.60 per rentable sq. ft., 51% below estimated replacement costs of $220 per sq. ft. Prime expects a first year cash yield of 10.6% on total cost of the 99.6% leased building.

Also in Chicago, Prime announced a $238 million option agreement with Blackstone Real Estate Advisors to buy IBM Plaza on or before Dec. 20, 1999. Prime made an $8 million non-refundable option payment to the building's seller. Prime anticipates obtaining $150 to $160 million in mortgage financing to purchase IBM Plaza, with the remainder paid in cash.

Located along the north bank of the Chicago River, IBM Plaza, is a 47-story, 1.35 million sq. ft. office tower that includes a 902-space garage. The building's two largest tenants, IBM and Chicago law firm Jenner & Block, occupy about 48% of the 93% leased building.

Prime also acquired Cleveland's National City Center for $100 million. The 35-story, 766,965 sq. ft. building is 99% leased, with National City Bank, Ohio's largest bank, occupying 520,425 sq. ft. Prime purchased National City Center by assuming a $61.6 million non-recourse first mortgage and paying $38.4 million in cash.

Overlooking the Hudson, Jersey's biggest sale of '98 totals $175M In the largest single asset sale in New Jersey in 1998, Jersey City's Exchange Place Centre has been sold for $175 million to BBV U.S. Real Estate Fund III LP and its affiliates, a German fund which was advised by New York's Clarion Partners.

New York's Rockwood Realty Associates LLC, through its real estate disposition affiliate Rockwood Disposition Services, arranged the transactions for seller Prudential Real Estate Investors. The building is 100% occupied. Rents at Exchange Place average $35 per sq. ft., 11% above the local Class-A average.

As new owner, BBV plans to retain the 30-story, 700,000 sq. ft. Class-A trophy property for long-term gain. The building also includes a six-level parking deck with 480 spaces.

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