Shorenstein Buys 1700 Market in Philadelphia

Shorenstein Properties, the San Francisco-based real estate investment company, announced that it has completed the purchase of 1700 Market Street in Philadelphia’s Center City submarket. Shorenstein Properties purchased the 848,000-square-foot building from a partnership involving New York's Nightingale Group and investor David Werner for just under $200 million, according to an REBusiness article. Terms of the deal and representative information was not disclosed.

1700 Market Street was constructed in 1968 and is located on the southwest corner of Market and 17th Streets in the heart of Center City. The building has an attached 5-story parking garage with a 720 car capacity, and is considered among the top 10 office buildings that make up the Class A office segment of the market. The building was 87% leased at the time of sale, with major tenants including Deloitte & Touche, OSIsoft, AIG Life Insurance, and Blue Cross; Shorenstein said it plans to invest capital to further improve 1700 Market’s tenant appeal. A roughly 30,000-square-foot addition has been planned for an existing plaza area that will house two restaurants -— lll Forks and Cantina Laredo.

For more news and information visit Blumberg Partners.

Griffin, Shorenstein Form JV for Houston Justice Complex

Griffin Partners and Shorenstein Properties announced this week that they had entered into a joint venture for the possible redevelopment of the former ExxonMobil headquarters at 800 Bell in Houston, Texas, following the recent discussions regarding a new City of Houston justice complex. The JV aims to redevelop the 45-story high-rise in downtown Houston, which will have 1.2 million square feet of space on offer once ExxonMobil makes its move to The Woodlands in April.

"My hope is that this property will be able to meet the needs being explored at City Hall," Fred Griffin, Griffin Partners' chairman, told GlobeSt.com. "I am fully aware that there are many issues that need to be addressed by Griffin Partners, Shorenstein and the city of Houston to determine if 800 Bell meets the needs for a new City of Houston Justice Complex. We are now approaching the city to discuss details."

800 Bell is a 1.2 millions square foot office tower which includes a 45-story office building and a 7-story parking garage covering 2 city blocks in Houston's Central Business District, built in 1962 as the headquarters of Humble Oil & Refining Company, a predecessor to ExxonMobil. The property has convenient access to Interstate 10, Highway 59, Highway 288 and Interstate 45. In addition, Metro's citywide bus service and rail is also accessible immediately in front of the property. 800 Bell is within walking distance of the new connection to the underground pedestrian tunnel system. The building was purchased by Shorenstein in January 2013 for and is currently being leased back to ExxonMobil until that firm's planned move to its new campus later this year. Griffin says that ExxonMobil is leaving the space in good, usable condition, and that the transition could take from 15-18 months to complete.

For more news and information visit Blumberg Capital Partners.

Shorenstein Properties Buys Denver City Center $286M

Shorenstein Properties entered the Denver market with its acquisition of the Denver City Center this month for $286 million, according to a person familiar with the price. Crescent Real Estate, doing business as MS Crescent Two SPV, bought the two-building Denver City Center, which includes Johns Manville Plaza, in 2007, when the Fort Worth, Texas-based company paid $155.3 million for 717 17th (Johns Manville Plaza) and $126.7 million for 707 17th, Denver Assessor records show.

"Denver City Center's rich amenities, access to public transit and excellent location make it an appealing corporate address for a broad range of tenants doing business in Denver and we only look to enhance its appeal through our management and operational expertise," said Douglas Shorenstein, Chairman and CEO, Shorenstein Properties, in a statement.

The purchase includes the office portion (floors 21 through 42) of 707 17th Street, a 42-story LEED Silver-certified Class A office building, and Johns Manville Plaza, an adjacent 29-story LEED Gold certified office building located at 717 17th Street; also included in the purchase is parking for 589 vehicles. The two adjacent office buildings encompass 1.3 million square feet located on 17th Street in the heart of downtown Denver. The buildings are currently home to 40 companies including the world headquarters of Johns Manville, a leading manufacturer of building products and part of the Berkshire Hathaway group of companies.

For more news and information visit Blumberg Capital Partners.

$2.3B Spring District Development in Bellevue Breaks Ground

The Spring District, a 36 acre environmentally sustainable, mixed-use urban neighborhood in Bellevue, Washington broke ground this week as the new $23 billion project that is targeting the technology industry moves closer to completion. The City of Bellevue approved The Spring District Master Development Plan, designed for the old Safeway Distribution Center in the Bel-Red Corridor, in May of 2012, and this week Phase One began in earnest as the developers razed a big warehouse where Coca-Cola and other tenants operated until recently. Developed by Wright Runstad & Company and Shorenstein Properties, The Spring District will be developed block-by-block over the course of 15 years, with a light rail station ultimately connecting the community to Microsoft, downtown Bellevue and Seattle. When fully developed, The Spring District, designed by NBBJ, will total approximately four million square feet including three million square feet of office space, up to 1,000 multifamily residences, and ground floor retail spaces.

"We’re excited to launch The Spring District and create a new urban extension of downtown Bellevue, much like the Pearl District has extended downtown Portland," said Greg Johnson, the President of Wright Runstad & Company, in a press release. "Security Properties has done exciting projects in San Francisco, Ballard and Fremont that were specifically tailored to those communities, and we think that experience is a perfect fit for The Spring District." Notes John Marasco of Securities Properties, "We plan to work closely with the property owners and the neighborhood, to create something tailored to the location and the people who will live there. We don’t do cookie-cutter. Every development is tied to its neighborhood by art and design."

Phase One of the project includes the purchase of a 2.5-acre parcel at the southwest corner by Securities Properties for a 316-unit multifamily project, with an option to develop another 225 units on an adjacent parcel. Located at the intersection of State Route 520 and Interstate 405 in the Bellevue-Redmond Corridor, Phase One plans also include six office buildings and a two-acre park block. There are also plans to convert some of the existing warehouse areas into spaces suitable for an urban distillery or tap house, along with an ample landing pad and outdoor dining space for food trucks.

Bellevue-based Broderick Group is the broker responsible for leasing the first two office buildings in Phase One of The Spring District. "This first residential project will speak volumes to knowledge-based companies that want to offer their current and future employees the 24-hour, live/work lifestyle that can only be found in or near an urban core," said Jeff Watson, principal at the Broderick Group. "The ability to attract and retain the best talent is paramount for growing companies who increasingly view real estate as a potential competitive advantage, and The Spring District is well on its way to becoming a hub for innovative companies."

For more news and information visit Blumberg Capital Partners.

Wacker Drive Trophy Tower for Sale

311 South Wacker Drive in Chicago, the tallest building in the world known only by its street address, is being offered for sale at a yet-to-be-disclosed price according to an nreionline.com article. The owners, a venture comprised of affiliates of Fremont Realty Capital, Mark Karasick and Shorenstein Properties, will be exclusively advised in the sale of the 65-story office building by CB Richard Ellis' Chicago Capital Markets Group.

Originally constructed in 1990, 311 South Wacker was designed by Kohn Pedersen Fox Associates with 1.3 million square feet of rentable office and retail space. 311 South Wacker is the winner of Chicago's First BOMA International TOBY Award for the office building of the year in the over one million square feet category. The building is reportedly 91% leased to long-term tenants.

For more news and information visit Blumberg Capital Partners.