Archive for Office Market

Jun
03

RealOp Investments to Acquire Greenville Office Parks

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park eastRealOp Investments and Terra Capital Partners have formed a strategic partnership to acquire and manage the Park East and Park Central office complexes in Greenville, SC. The 570,000 square foot portfolio includes two office parks and twelve buildings situated along the I-385 corridor, three miles from downtown Greenville, South Carolina (Park Central) and less than a mile from I-85 (Park East).

RealOp, along with leasing and management partner NAI Earle Furman, will update, rebrand and relaunch the office complexes to increase market awareness and drive portfolio profitability.

“We are excited to be involved with these properties and believe there is a tremendous opportunity,” explained Chip Hunt, Director of Investment Management at RealOp. “A number of physical and brand improvements are already in progress. We look forward to sharing these initiatives with existing tenants and the market in the coming year.”

Park East is home to nine multi-tenant office buildings – three 3-story buildings and six 2-story buildings, developed between 1974 and 1998. Park Central contains a total of three multi-tenant office buildings – two 3-story and one 2-story, developed between 1982 and 1986.

Categories : Greenville
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Mar
24

RTP Office Building Sold for $51/SF

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The owners of the sprawling former Reichhold headquarters building at 2400 Ellis Road in Durham took a big hit when the property went to foreclosure auction last month.

According to Durham County records, the now-empty 332,000-square-foot building has been sold for $17 million to the highest bidder, an real estate investor group from Texas that was also carrying the note on the building loan, Orix USA.

The $17 million auction bid, the highest amount offered, was 69 percent less than the $55 million that RTP LLC paid for the building in 2007, according to county records. RTP LLC is an affiliate of the Michigan real estate firm Redico.

Categories : Durham, Raleigh
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Cushman & Wakefield | Thalhimer, announced today that its Capital Markets Group has represented Highwoods Properties in the sale of an office portfolio comprised of eight class A office buildings totaling 686,680 SF located among two of the top suburban office parks in the Greenville, South Carolina market.

This value-add portfolio consisted of six buildings within Patewood Business Park totaling 448,505 SF and two buildings within Brookfield Corporate Center totaling 238,175 SF. Patewood Business Park was 71% leased to 17 tenants at the time of sale, including prestigious national tenants such as Flour, Ogletree Deakins, and Mustang Engineering. The two buildings at Brookfield Corporate Center were 66% leased at the time of sale to four tenants including Metlife and GE Gas Turbines.

The buyer was Garrison Investment Group, LLC, a private equity firm located in New York City with real estate holdings throughout the US. Garrison Investment, LLC also owns other properties in South Carolina, including the Columbia Marriott, a Holiday Inn Express in Charleston, Westmark Plaza in Sumter and Berkeley Place in Bluffton.

The purchase price was $58,200,000. No cap rate was reported

 

Categories : Greenville
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Nov
19

Charlotte Office Vacancy Rates at a Four-Year Low

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With the third quarter results in, all signs point to continued incremental improvement of the Charlotte office market. Vacancy rates have fallen to a four-year low and investment sales activity continues to strengthen as new capital sources enter the market.

On the economic front, unemployment in Charlotte continues to lag behind some other North Carolina cities at 9.5 percent, but the city is experiencing positive economic movement in other measures, particularly single-family housing and retail sales.

For some long-term perspective, the labor force in Charlotte has grown 22 percent during the past 10 years, nearly three times the national rate. Additionally, in August, the population of Mecklenburg County reached 1 million people. With a population of approximately 2.3 million, Charlotte maintains its position as the largest MSA in the Carolinas.

READ MORE HERE

Categories : Charlotte
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Nov
11

Spartanburg’s Corporate Center Expanding

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Corporate Center, a Class A flex park situated on 193 acres off of I-85 in Spartanburg, is experiencing tremendous growth. To meet the high demand for flex space, the Corporate Center has laid the foundation on a new building at 130 Corporate Drive, which is expected to be available for occupancy starting January 1. In the next six months, Corporate Center is projected to build a second 50,000-square-foot building on the same site. Additionally, five new tenants have moved into the existing buildings collectively leasing a total of approximately 90,000 square feet.

The building currently under construction will be the eighth building on campus and will offer an additional 50,000 square feet of space that can be expanded up to 72,000 square feet. All utilities, including fiber optics, will be available, and additional parking can be added as needed. Dan Dunn of NAI Earle Furman, a leading full-service commercial real estate firm, is the leasing agent.

With these new occupants, Corporate Center has a roster of 19 companies leasing a total of approximately 300,000 square feet.

 

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Aug
26

Renovations Planned for Greenville’s Liberty Square

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One of downtown Greenville’s most iconic commercial developments is undergoing $4 million in enhancements, courtesy of its new owners.

The initial stages of the enhancement strategy underway for One and Two Liberty Square, purchased last month by New York-based HighBrook Investment Management Funds, began with the engagement of Upstate-based CBRE | The Furman Co. as the exclusive leasing and management agent of the Class A office towers, an announcement said.

The firm, already entrenched in the property, was best positioned to foster positive tenant and community relationships, said Ed Gargiulo, HighBrook’s vice president of Asset Management.

“Given the uncertainty surrounding the asset over the last couple years, we knew it was essential to align ourselves with a firm that understands the value of a strong owner-tenant relationship,” Gargiulo said.

READ MORE HERE

Categories : Greenville
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Jul
25

Greenville’s One and Two Liberty Square Sold

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New York-based HighBrook Investment Management, an independent value-oriented investment firm formed in 2011, purchased One and Two Liberty Square in Greenville’s downtown business district at 55 and 75 Beattie Place.

Totaling over 445,000 square feet, the pair of mid-rise office towers are currently 74.4% occupied and include Ernst & Young, Brown Mackie College, Jackson Lewis, Gallivan White and Boyd, Dority and Manning, McAngus Goudelock and Courie, Commerce Club, and Sherman Financial Group as tenants.

CBRE | The Furman Co.’s Craig Stipes and Matt Covington, in partnership with CBRE’s Patrick Gildea and Ryan Clutter in the firm’s Charlotte, NC and Washington, DC offices, marketed the buildings on behalf of the seller, Lehman Brothers Holdings, and were also credited with procuring the buyer. The sale closed on July 15, 2013.

READ MORE HERE

Categories : Greenville
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Jun
20

Reis: Office Market Cap Rate Trends

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The office market followed fourth quarter’s impressive performance with continued momentum. After the mean cap rate compressed by 70 basis points during the fourth quarter, it compressed by another 30 basis points during the first quarter of this year to fall to 6.7%. This is the lowest that the mean cap rate has been since the third quarter of 2008, before the market hit the skids, when it stood at 6.4%. Although the mean office cap rate has been somewhat idiosyncratic over the last few years, at this juncture that kind of cap rate expansion seems unlikely. The mean cap rate might continue to jump around in the future, but a recovering office market should keep cap rates compressing for the foreseeable future.

In contrast, the 12-month rolling cap rate is not approaching the low levels that were reached before the market imploded. The 12-month rolling cap rate is still approximately 80 basis points above where it bottomed during the third quarter of 2008. We will need to see more than two quarters of compressing mean cap rates if we are to test that low, which indicates we should pay close attention to cap rates in the coming quarters. But if the 12-month rolling cap rate starts to test historically-low cap rates, that would mean that the recovery is becoming more entrenched and investors are buying office properties in anticipation of improving fundamentals over the medium-term.

 

Categories : National News
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Dec
06

525 North Tryon Under Contract for $47.4 million

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Parkway Properties, Inc. has announced that it has entered into a purchase and sale agreement to acquire 525 North Tryon, a 406,000 square foot office tower located in the central business district (CBD) of Charlotte, North Carolina as part of a three-property transaction. All three acquisitions are subject to customary closing conditions and are expected to close by the end of the fourth quarter of 2012.

Parkway is under contract to acquire 525 North Tryon for a purchase price of $47.4 million, or $117 per square foot. 525 North Tryon was built in 1998 and is a 19-story, Class A office tower with an attached parking garage. The building is currently 69.8% leased with an average in place gross rent per square foot of $19.61. 525 North Tryon is expected to generate a 2013 estimated cash net operating income yield of approximately 4.7%. Parkway will own 100% of the asset and does not plan to place secured financing on the property at this time. Closing is expected to occur by the end of the fourth quarter 2012 and is subject to customary closing conditions.

Categories : Charlotte
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Nov
07

SouthPark Office Building Sold for $3.2 million

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A limited liability company managed by Hadi Atri, chief executive of Re/Max Executive Realty, has purchased an 18,500-square-foot office building in SouthPark for $3.2 million.

The fully occupied multitenant building at 2901 Coltsgate Road is the home of Re/Max’s SouthPark office. Tiffany Slayden of Brackett Flagship Properties, represented the seller, T Hall Enterprises I, a limited liability company managed by Thomas J. Hall. The buyer was not represented. Brackett Flagship will continue to manage the property.

The previous sales price, in June 2007, was $3,954,000 ($207.60/SF). It was built in 1993 and sits on a 1.12 acre site. The tax map number is 183-132-10.

Categories : Charlotte
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Oct
25

Charleston’s Faber Centre Sold

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Holder Properties announces the sale of Faber Centre, a four-story, 97,000 SF class A office building in North Charleston to LAF Brothers Properties, LLC.

Faber Centre was developed by Holder Properties in a joint venture partnership with Durlach Associates. The property is located in The Executive Park at Faber Place, off of I-526. The office building is ENERGY STAR certified and features first class interior improvements. Currently, Faber Centre is 94 percent leased to multiple, regional and national tenants. Tenants include: Suntrust, Pulte Homes, Charleston County Economic Development, Cigna, Metlife, Jacobs Engineering, Walgreens, Deltacom, Tek Systems, Progressive, Finkel Law, And Regus.

Colliers International represented the seller and buyer in the transaction. Durlach Associates will continue to manage and lease Faber Centre on behalf of LAF Brothers Properties, LLC.

Categories : Charleston
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Oct
22

Columbia Office Market Vacancy Ticks Up Slightly

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Although there was plenty of leasing activity during the past quarter, the vacancy rate for the Columbia office market appears to be frozen.

Colliers International, a commercial real estate firm, reported that the third quarter vacancy rate increased slightly by 0.02%, marking a negative absorption of 1,341 square feet. The overall vacancy rate for the Columbia area, which consists of 161 buildings consisting of nearly 10 million square feet of office space, was 23.33%, Colliers reported.

While the downtown Central Business District ended the quarter with a 22.61% vacancy rate, the Class “A” vacancy rate registered 13.59%. The vacancy rate for Class “A” space in the suburban markets was 13.77% compared to the overall suburban vacancy rate of 24.04%.

Economic uncertainty and the upcoming presidential election seem to be keeping businesses on the sidelines, Colliers said.

READ MORE HERE

Categories : Columbia
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Sep
27

Columbia’s Meridian Building Sold for $180/SF

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A Massachusetts real estate investment trust has bought the Meridian Building, a 17-story office tower in downtown Columbia.

CommonWealth REIT paid $60 million for the class A office building at 1320 Main St., according to a deed transfer filed Sept. 18 in Fulton County, Ga. The building’s developer, Holder Properties, is based in Atlanta.

The 333,000-square-foot Meridian Building is the second major real estate deal in the Central Business District in the past week.

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Categories : Columbia
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Jul
20

Columbia Office Market Showing Positive Signs

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Downsizing of money-strapped state government agencies caused the vacancy rate of downtown Columbia office space to increase slightly, but the overall metro market shows signs of bouncing back from the Great Recession, Colliers International reported.

Leasing activity expanded into the suburban markets in the second quarter of 2011 with the St. Andrews area making the greatest gains, the commercial real estate firm said.

In downtown Columbia, tenants vacated 17,238 square feet of office space during the second quarter, Colliers said.

“This negative absorption can be largely attributed to downsizing by the South Carolina state government, which is an anticipated result of the state’s continued financial pressure to cut operational expenses,” the report said.

Despite the downturn in government activity, the report noted that the private sector remains strong in the downtown area as insurance and legal sectors continue to grow.

READ MORE HERE

Categories : Columbia
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