Insignia/ESG reports strong leasing in New York office Registering positive net absorption for the 12th consecutive month, New York's Midtown office market has jumped by 31% in total leasing activity from a year ago to 7.1 million sq. ft., reports New York-based Insignia/Edward S. Gordon Co. Inc.'s June Office Market Report. For the second time in the past three months, Midtown has surpassed 1.6 million sq. ft. of leasing activity, and it has absorbed 3.7 million sq. ft. so far in 1997 -- more space than was absorbed in any full year during the 1990s.
Other segments of the New York office market are also faring well. Downtown, though not as active as the last two months, had 420,384 sq. ft. of total leasing for May, up 29% from a year ago. Availability rates for Class-A buildings developed since 1980 have dropped to 8.7%, down from 11.5% one year ago.
In Midtown's Park Avenue/ Madison Square segment, leasing totaled 252,000 sq. ft. for May, which was partially driven by Price Waterhouse's 138,000 sq. ft. sublease at 11 Madison Avenue. Availabilities have dropped to 9.9%, the lowest rate in the Manhattan market. Net absorption for the area registered a positive 175,000 sq. ft. for the month.
RREEF forms single-asset private REIT for New York acquisition To acquire the 901,138 sq. ft. 380 Madison Avenue on behalf of two pension funds, the New York office of RREEF Funds has formed a single-asset private REIT. The pension funds invested cash above a first mortgage held by Goldman Sachs Mortgage Corp. The property is subject to a master lease to Spartan-Madison Corp.
OPCC starts new management and leasing responsibilities Through its management and leasing subsidiary, Overseas Management Inc. (OMI), Atlanta-based Overseas Partners Capital Corp. (OPCC) began new leasing and management responsibilities at the 900,000 sq. ft. Atlanta Financial Center (AFC) and the 442,860 sq. ft. One Buckhead Plaza as of July 1. OMI will be taking the responsibilities for the AFC from ARES and from Taylor & Mathis for Buckhead Plaza. OPCC currently owns both Class-A projects.
Carter & Associates*ONCOR begins leasing at One Riverside
Leasing has begun at Atlanta's One Riverside, a 225,000 sq. ft. Class-A office building, which is part of Riverside by Post, an 85-acre mixed-use development by Atlanta-based Post Properties Inc. Carter & Associates*Oncor is providing the leasing services for the building, which is a part of the "new urban" community that includes upscale high-density apartment housing and retail space as well as Class-A office space, all within a five-minute walk.
Greenwich Group buys Scottish project, sells Beverly Hills building
New York-based The Greenwich Group International has purchased the 150,000 sq. ft. Trinity Park House, one of Edinburgh, Scotland's largest office buildings, and it has represented Chicago-based Equity Office Properties LLC in the sale of 8383 Wilshire Boulevard, a 415,000 sq. ft. Class-A office building in Beverly Hills, Calif.
The purchase price for Trinity Park House, which is 100% leased until 2004, was $19.9 million.
Arden Realty Inc., a Beverly Hills-based REIT, was the buyer of the 87%-leased 8383 Wilshire, Beverly Hills' largest Class-A office building.
Chesterton Binswanger sells to DRI/General Growth venture Philadelphia-based Chesterton Binswanger International has facilitated a new joint venture between Development Resources Inc. and Chicago-based General Growth Properties Inc. for the sole purpose of purchasing 110 North Wacker Drive, a 220,000 sq. ft. building in downtown Chicago.
Just to shake things up a bit, Assistant Editor Tracy Heath has taken over Office News. If you have any exciting information, please contact her at [email protected].