Buchanan Acquires Richardson Office Center I & II

Newport Beach, CA-based rest estate investment management firm Buchanan Street Partners announced this week that it had acquired Richardson Office Center I & II in Richardson, TX. The two-building office campus was purchased in partnership with CarVal Investors from Principal Real Estate Investors. Gary Carr and Robert Hill of CBRE represented the seller in the transaction, and Buchanan Street Partners was self-represented. The acquisition marks the second Dallas market purchase this year for Buchanan; terms of the deal were not disclosed.

"The Far North Dallas submarket has been experiencing strong positive absorption and growth in rental rates causing a wider-than-normal price gap compared to Richardson," said Matt Haugen, assistant vice president at Buchanan Street Partners. "Given that trend, the location was one of the main reasons we were attracted to the property. Companies in search of a better real estate value have moved to Richardson because of its affordability and projected growth."

Built in 1999, Richardson Office Center at 3001 & 3101 E. President George Bush Highway are twin, 120,000 SF first class office buildings located off of President George Bush Turnpike and Renner Road in Richardson, Texas. The property was 90% leased at the time of sale with major tenants including Boeing, Genpact and Avnet. Richardson's average lease rate is $19.26 per sf, which is affordable compared with lease rates in the Far North Dallas submarket with an average lease rate of $22.46 per sf, according to CBRE research. The average lease rate in Dallas is $21.68 per sf.

For more news and information visit Blumberg Partners.

Russell Investments Center Sold for $480M

Northwestern Mutual announced Friday that it has sold the Russell Investments Center at 1301 Second Ave. in Seattle to CommonWealth Partners, a privately held real estate investment, development and management firm based in Los Angeles, for $480 million. According to the Northwestern Mutual press release, it is believed to be the largest single asset office sale in the Western United States since 2006. CBRE served as broker for the transaction through a team led by Vice Chairman Kevin Shannon.

"This transaction is an example of how we actively manage our $5.8 billion real estate equity portfolio to generate strong returns on behalf of our policyowners," said Paul Hanson, managing director - real estate, Northwestern Mutual. "The company's real estate strategy typically focuses on long-term holds; however, the Seattle market rebounded quickly, creating an excellent opportunity for the company to realize a gain for our policyowners."

"It speaks volumes about real-estate market cycles," said Ann Chamberlin, managing director with brokerage Jones Lang LaSalle, in a Seattle Times article. "That building was purchased [by Northwestern Mutual] at the absolute bottom of the market. Now we're bouncing back and they're getting a nice return."

Northwestern Mutual originally purchased the 42-story, 872,000 square foot office building in the fall of 2009. The sale is not expected to cause disruption for tenants with long-term leases, including Russell Investments, Boeing, Nordstrom, Dendreon, JP Morgan Chase and Zillow.

For more news and information visit Blumberg Capital Partners.

Boeing Begins Construction on Oklahoma City Building

The Boeing Company announced this week that construction had begun on a new 320,000 square foot building in Oklahoma City according to a BusinessWeek article. The building, designed by the Gardner Tanenbaum Group, is expected to be completed in the second quarter of 2012 and will accommodate the move of selected Boeing groups from Long Beach, CA to Oklahoma City.

"By moving B-1 and C-130 AMP to Oklahoma City, we are able to lower our operating costs and extend an increased value to our customer," said Mark Bass, Boeing vice president and general manager of Maintenance, Modifications & Upgrades at Boeing. "Boeing appreciates the positive business environment created by the state of Oklahoma and its county and city governments. This environment contributes to our affordability, and the well-trained aerospace work force already in place will be key to our success."

Boeing currently employs 945 employees in Oklahoma, 745 of whom are located in Oklahoma City. Boeing will have nearly 1,500 employees in the state when the B-1 and C-130 transition is complete.

For more news and information visit Blumberg Capital Partners.