New 1.6M SF Spec Industrial Park for Arlington

Ridge Development, the industrial development arm of Transwestern Development Co., announced this week that it will break ground this quarter on a new speculative industrial park in Arlington, Texas. The 1,605,620 square-foot, 119-acre project, dubbed Park 20/360, is owned by a venture between Invesco and Ridge Development. The former High Point Church property was sold by the Evangelical Christian Credit Union in Brea, California, which foreclosed in July 2014. Phase I of construction, expected to deliver in first-quarter 2017, calls for four buildings totaling 1,249,560 square feet; Phase II will follow with another four buildings, with full delivery expected in second-quarter 2018.

"The confluence of a thriving Texas economy with continuing solid fundamentals, record-setting occupancy within the Great Southwest Industrial District, a diverse commercial make-up in Dallas-Fort Worth and an outstanding location warrant the development of such a large project on a speculative basis," said Kent Newsom, executive vice president at Ridge Development, in a prepared statement. "Park 20/360 is divided into three different types of space to accommodate multiple industrial user types including bulk distribution, warehouse and flex."

The project is one of the largest new warehouse complexes under construction along Interstate 20, which had more than 6 million square feet of projects being built in corridor at the end of 2015. The park benefits from being inside a Triple Freeport Tax Exemption zone and is only 18 miles from DFW International Airport. Alliance Architects Inc. serve as architects for the park, with civil engineering provided by Pacheco Koch Consulting Engineers Inc. Transwestern's Vice President Joe Rudd and Principal John Brewer are providing leasing services.

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Stafford Place I & II Sold for $300M

Ralph Dweck and his D.C.-based Dweck Properties Ltd. retained Transwestern to market Stafford Place I and Stafford Place II in Arlington, VA, which just successfully sold the properties for $300 million, according to a report by Real Estate Alert. The two trophy assets total 748,066 square feet and are 100% leased and occupied, primarily to the U.S. Government’s National Science Foundation (NSF). Dweck originally purchased Stafford Place I in 2006 for $197 million, or $355 per square foot; the year before, they'd purchased Stafford Place II in a $420 per square foot sale, which was the highest price paid for a commercial office building in the Ballston submarket at the time.

The NSF occupies 86% of the buildings and utilizes this premises as its headquarters location dispersing over $7 billion worth of grants annually to the scientific community on behalf of the U.S. Government. This premier location in the Ballston submarket of Arlington, VA has served as the NSF’s headquarters for close to 20 years due to the highly-educated workforce living in the immediate vicinity. Other tenants include CENTRA Technology, a government contractor, and the National Telecom Cooperative Association.

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Transwestern Breaks Ground on Austin MU Project

Transwestern Development Co. and its partners announced this week that it had broken ground on a two-building mixed-use project in Austin, Texas. Amegy Bank of Texas and Comerica Inc. provided the financing for the project. Kirksey Architecture designed the office portion of the project, and Wilder Belshaw Architects designed the Arnold. The general contractors are Harvey Cleary; for the office portion, and Andres Construction for the mixed-use building. Kimbell Bruehl Garcia Estes is the civil engineer for both buildings.

"We are very pleased to get started on this exciting development," said Transwestern Development Co. Associate Vice President Josh Delk. "This location is in the center of one of Austin's most culturally rich and defining neighborhoods, and we are thrilled to be bringing a project of this caliber to the area. The Arnold and accompanying office building will add to the creative energy with its mix of office, multiple housing options and prominent local retail and restaurant offerings."

The project at 1621 and 1645 E. 6th St. includes a 94,500-square-foot creative office building, which is scheduled for completion in January 2016, and a second, The Arnold, that is slated for delivery in July 2016 consists of 346 apartment units with 9,600 square feet of specialty retail at three key intersections of the property.

For more news and information visit Blumberg Capital Partners.

Rockrose Buys Lincoln Square in $300M Deal

Rockrose Development Corp., one of New York's most pre-eminent and prolific developers, has purchased Lincoln Square, a 414,204-square-foot office building in Washington, D.C. The deal was brokered by The Singer & Bassuk Organization which helped obtain a $227 million loan from Morgan Stanley to fund the acquisition. Rockrose brokered the acquisition in-house, and Gerald Trainor, Kenneth Marks, and James Cardellicchio of Transwestern represented the seller, Ralph Dweck, according to a Citybizlist article.

"The East End is one of the greatest cultural destinations in the Washington area, with museums, galleries and theatres within walking distance, and 555 11th Street is at its epicenter," Rockrose President Justin Elghanayan said in a statement. "The building is also home to the Landmark Theatres' E Street Cinema, a destination for cineastes in search of the finest indie and art films."

Designed by Hartman-Cox architects and completed in 2001, the Class A Trophy building at 555 11th St. is a 13-story office property with street level retail totaling 406,929 rentable square feet. Lincoln Square boasts a three-story marble lobby atrium, three levels of underground parking, a fitness center and retailers such as Jos. A. Bank, Starbucks and a 35,000-square-foot Landmark Theatre. Latham & Watkins' new lease, which solidified its commitment to Lincoln Square with a 15-year extension through 2031, contends that ownership will carry out a capital improvement program involving base building upgrades to the restrooms, fitness center and main lobby.

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Penzance Picks Up Reston Office Buildings

Penzance, a D.C. based real estate development and operating company, announced this week that it had purchased Corporate Plaza I and II in Reston, VA for $22.6 million, or about $158 per foot. Transwestern's Institutional Commercial Group brokered the sale to Penzance on behalf of Piedmont Office Realty Trust; terms of the deal were not disclosed.

"The transaction achieved the strategic goals of both the buyer and the seller," said Gerry Trainor, Transwestern's managing executive director. "In the case of Piedmont, the sale is in line with its strategic plan of exiting non-core properties and focusing on aggregating Class A assets near transportation nodes in specific submarkets. For Penzance, the acquisition is consistent with its suburban value-add strategy and thesis that the Dulles Toll Road will lead the suburban recovery."

Matt Pacinelli, senior vice president of leasing for Penzance, said Metro access is a strong amenity. "I've probably gotten more activity in the building than I have in any of my other properties, and the reason for that is it's unique," Pacinelli said. "The Silver Line, it's not the main reason to acquire it, but it is a bonus." The two office buildings at 11107 and 11109 Sunset Hills Road total 142,394 square feet and are situated along the Dulles Toll Road (Route 267), just 0.75 miles from the new Wiehle Avenue Metrorail station and 1.7 miles from the Reston Town Center.

For more news and information visit Blumberg Capital Partners.

Pomfret Buys Pleasanton Building for $6.5M

Pomfret Estates Inc. finalized its purchase this week of a 23,076-square-foot medical office building in Pleasanton, California for $6,550,000, or $282 per square foot. Pleasanton-based Bernal Associates sold the building with representation from Ian Thomas, senior vice president of Colliers International, while Pomfret was represented by Transwestern Managing Director Ed Del Beccaro. Terms of the deal were not disclosed.

The medical services building at 5000 Pleasanton Avenue was originally listed for sale in April 2013 and marketed by Colliers. Built in 1999, the building offers approximately 3,556 rentable square feet on the ground floor, along with building signage opportunities and an excellent central location near Amtrak, Highways 580 and 680 and downtown Pleasanton. Del Beccaro and Transwestern Vice President Sonny O'Drobinak have also been retained to lease the two-story medical office.

For more news and information visit Blumberg Capital Partners.

Westport Capital Affiliate Buys Corporate Plaza

Corporate Plaza, a highly recognizable office development within the St. Louis West County submarket, traded hands this month as Invesco Real Estate sold the property to an affiliate of Westport Capital Partners for an undisclosed price. Transwestern's Chicago office brokered the deal on behalf of Invesco with representation from Gary Nussbaum, Thomas Gorman, and David Matheis. Westport Capital Partners represented itself in the transaction.

"We are thrilled to have completed this acquisition," said Sean Armstrong, a principal of Westport. "Mercy plays a vital role in providing healthcare to more than three million people annually. We look forward to supporting its mission as its landlord."

"There was significant interest in the property due to the credit of the anchor tenant and the location in the Highway 40/West County office market, which is highly sought after by investors," said Gary Nussbaum, managing director of Transwestern.

The 210,409 square-foot, five-story office building at 14528 S. Outer 40 in Chesterfield, Missouri was 98% leased at the time of sale, with the not-for-profit healcare provider Mercy occuping 89% of the property, according to a Sacramento Bee article.

For more news and information visit Blumberg Capital Partners.

New BHP Billiton Tower in Uptown Houston Underway

Construction began this week on a new 30-story office tower in Houston's Uptown District that will add 600,000 square feet of Class AA office space in the Galleria submarket. The new BHP Billiton Tower is being developed by financial services firm TIAA-CREF and Transwestern, and is 100% preleased to BHP Billiton, a major global diversified resources company. The design architect on the project is Pickard Chilton Associates of New Haven, Connecticut, and the architect of record is Kendall Heaton Associates of Houston. The building is expected to be completed in October 2016.

"Transwestern is honored to be a part of the team assembled to make this project a reality," said Carleton Riser, Transwestern's managing director of development. "We believe it will have a long-term positive impact on BHP Billiton, the Four Oaks complex and the Uptown Houston skyline."

"The new tower, like the other buildings in Four Oaks Place, will incorporate the latest in green building practices," said Brad Simpkins, TIAA-CREF senior director, asset management. "BHP appreciated these sustainability initiatives, the building's downtown location and a building design focused on maximizing employee productivity and their investment."

The tower is being built on 2.72 acres on Post Oak Boulevard, within the Four Oaks Place office complex on a site that is adjacent to the BHP Billiton headquarters building currently located in the complex. According to a press release, the new BHP Billiton Tower and the existing headquarters at 1360 Post Oak Boulevard will be connected by a glass skybridge and employee productivity facilities including food service and fitness.

For more news and information visit Blumberg Capital Partners.

Houston's Museum District Getting New Mixed Use Development

Balcor Commercial, an investment sales brokerage firm, is developing a new 50,000-square-foot building in the Museum District of Houston, Texas that's expected to open during the 4th quarter of this year. Designed by Energy Architecture, the development at 1801 Binz is already under construction. The cost of the project was not disclosed.

Transwestern's Houston headquarters announced this week that it has been awarded the leasing assignment for the mixed-use development, with 60% of the property already leased. The development will contain a mix of high-end retail, medical and office space. "Upon completion, 1801 Binz will be one of Houston's finest boutique developments, combining multiple unique food concepts with first-class office space," said Nelson Udstuen, vice president of healthcare advisory services at Transwestern. "Its proximity to the Texas Medical Center with immediate access to Main Street and Highway 288 creates the ideal environment for medical and office tenants seeking a premier location in one of Houston's most sought after submarkets."

For more news and information visit Blumberg Capital Partners.

FSP Picks Up Denver Office Tower for $183M

Pearlmark Broadreach 1999 LLC has entered into a definitive agreement to sell a 43-story office building in the central business district of Denver, Colorado for $183 million. FSP 1999 Broadway LLC, a wholly-owned subsidiary of Franklin Street Properties, will take ownership of the property in a sale expected to close on July 1, according to SEC filings. A joint venture led by Broadreach Capital Partners and Transwestern previously acquired the property in November 2005.

The sale includes the 680,277-square foot office building at 1999 Broadway and a nine-story, 177,472-square foot garage at 2099 Welton Street. The property is currently 95% leased with major tenants including the Internal Revenue Service, Berry Petroleum Co. and Mercy Housing. Built in 1984 and 1985, the office tower is Energy Star rated and LEED Silver certified.

For more news and information visit Blumberg Capital Partners.

IIT Buys Chantilly Business Center II for $17.5M

Industrial Income Trust (IIT), a non-traded real estate investment trust (REIT) that acquires and operates high-quality distribution warehouses and other industrial properties, acquired Chantilly Business Center II this week for $17.55 million. Transwestern brokered the sale of the 160,000 square foot Class A warehouse on behalf of Principal Life Insurance Company.

"This was a rare opportunity to buy a trophy asset in the Chantilly Industrial market," said Mark Glagola, Transwestern broker. "There was significant investor interest and in the end, we were very pleased with the pricing results." The fully leased warehouse at 3920 Stonecroft Boulevard in Chantilly, VA was originally constructed in 1996 and is situated on 15 acres. According to Fairfax County records, the property previously sold in April 1999 for 8,600,000, and for $1,413,418 before that in 1996.

For ore news and information visit Blumberg Capital Partners.

JV Picks Up Houston Pavilions for $100M

Houston Pavilions, a mixed-use three-block project in the heart of downtown Houston, traded hands this month as Entertainment Development Group sold the property for $100 million, or $175 per square foot, according to a CoStar report. Houston's Midway Cos. and Los Angeles-based Canyon-Johnson Urban Funds, a national real estate fund affiliated with Earvin "Magic" Johnson, have taken ownership of the complex and said that they will invest additional funds to revitalize the property to accelerate leasing. The JV acquired the project from receiver Transwestern, which was assigned to manage, lease and market the property in 2011.

In a joint statement, Bobby Turner, Canyon-Johnson's Managing Partner, and Earvin "Magic" Johnson said, "We are both proud to be investing in Houston again, and to be partnering with Midway to maximize the potential of such an incredible mixed-use asset. The support we have received from the City of Houston's leadership makes projects like this a possibility."

"The Houston Pavilions is a well-positioned property that we believe has incredible potential. The project is strategically located in Downtown Houston and fits our investment criteria for high-quality, remarkable assets. We are very excited to be partnered with Canyon-Johnson to acquire the property," said Midway COO Jonathan Brinsden.

Built in 2008, the Class-A 556,000 square foot project at 1201 Fannin includes the fully occupied, 11-story regional headquarters for NRG Energy, one of the largest power generating companies in the country, along with restaurants, retailers and venues including the House of Blues, Forever XXI, McCormick & Schmick's and Lucky Strike.

For more news and information visit Blumberg Capital Partners.

Rockrose Acquires DC Building for $120M

Rockrose Development Corporation completed the acquisition this month of 1776 Eye St. NW in Washington, DC, from Dweck Properties for nearly $119.69 million, or $533 per square foot, according to a CoStar report. The seller was represented by Gerry Trainer of Transwestern. Craig Deitelzweig, head of Rockrose's office division, represented Rockrose in-house.

Rockrose announced in November of last year that it was under contract to purchase the property as part of a strategic plan for Rockrose to expand its office portfolio in D.C. and New York. Henry Elghanayan, Rockrose CEO, said at the time that "Plans are already underway to provide a two-story glass entrance to the building, a dramatic new lobby infused with art work, renovated restrooms, common areas, new building systems, an expanded and reformulated rooftop terrace and a new fitness center. Essentially, after our major renovations 1776 Eye Street will be a brand new building."

The building was reportedly 90% leased at the time of sale with major tenants including Gavi Alliance, Carr Properties and Japan International Cooperation Agency. Rockrose has engaged the architecture firm Leo A. Daly to transform the building and has appointed Cassidy Turley as exclusive leasing agents for the property.

For more news and information visit Blumberg Capital Partners.

Bloomington Southgate Office Tower Surrendered to Lender

American International Group (AIG) will be taking back the Southgate office tower in Bloomington in a highly unpublicized transaction. According to a Minneapolis/St. Paul Business Journal report, the New York-based lender provided funds for the property to Welsh Companies, which is not preparing to give the office property back.

While no official statements have been released from the companies, a letter from the Minneapolish office of Transwestern was delivered to tenants of the property on October 28 notifying them of the ownership change. One of the tenants described the letter to the Journal and explained that Transwestern was expected to take over building management on November 15, a contract formerly handled by Welsh through its unit known as Colliers International | Minneapolis-St. Paul.

For more news and information visit Blumberg Capital Partners.

Concord Corporate Centre Sold by Transwestern

Transwestern Investment Company sold a two-building Class A office campus in Concord, California to Westcore Properties for an undisclosed sum this month according to a CoStar report. Westcore Properties was represented by Waveland Financial in the transcation. The 346,747 sqaure foot Concord Corporate Centre previously sold for $99 million in July 2007 when Transwestern acquired the property from Blackstone.

"Concord Corporate Centre is one of the top office projects in Concord and offers flexible and efficient floor plates, due to a center core configuration, that are ideal for smaller tenants," said Neil Johnson, managing director of acquisitions with Westcore Properties' Northern California office. "Westcore Properties recognized the opportunity to secure a Class A asset in a submarket that appears to be rebounding with 54,613 square feet of positive net absorption being reported for the quarter."

Major tenants of Concord Corporate Centre, located just 31 miles east of San Francisco in Contra Costa County, include Pacific Bell Directory, Eichleay Engineers, SeaBright Insurance Company and Gregory B. Bragg & Associates. Cornish and Carey Commercial will reportedly continue to be responsible for the leasing at the property.

For more news and information visit Blumberg Capital Partners.

Falls Church Corporate Center Towers Sell for $83.7M

Pearlmark Real Estate Partners sold two office towers in the Falls Church Corporate Center of Falls Church, VA for $83.7 million according to a CoStar report. The JBG Companies purchased the properties for $210 per square foot in a deal brokered by Transwestern's DC Institutional Commercial Group.

Located at 6400 & 6402 Arlington Blvd in Falls Church, the Falls Church Corporate Center was reportedly 88% occupied at the time of sale. The property consists of two 13-story office buildings totaling 399,049 square feet and a development site that can accommodate a 200,000 square foot office building. Gerry Trainor, executive managing director of Transwestern, told GlobeSt.com that "JBG's game plan is to lease it up and enjoy the cash flow."

For more news and information visit Blumberg Capital Partners.

NorthPark Central Tower Sold for $64.4M

AREA Property Partners sold the Northpark Central office building in Dallas, TX for $64.4 million last week according to a Dallas Morning News article. Cornerstone Real Estate Advisors purchased the 491,083 square foot office building at 8750 N. Central Expressway; Transwestern was selected to lease and manage the property. AREA originally purchased the property through one of its funds from Connecticut General Life in 1996 for $53.8 million.

The 20-story mirrored-glass office tower is roughly 90% leased with major tenants including The Richards Group, Gilsa Products and CF & Co. The building was awarded an Energy Star label in 1999, 2002, 2003 and 2009 for its operating efficiency. The sale also included a six-story, 700-space parking garage that is directly adjacent to the property according to a CoStar report.

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