Hines makes a double play in Houston and Chicago
In two joint ventures, Houston-based Hines plans to develop its 10th office tower in downtown Houston and has acquired Chicago's Quaker Tower.
In Houston's resurgent downtown submarket, Hines will develop a 32-story, 689,000 sq. ft. office tower in a joint venture with Prime Asset Management. San Jose, Calif.-based energy concern Calpine Corp. has pre-leased approximately 300,000 sq. ft. in 10 floors, two of which will be trading floors. Located at 717 Texas, the building will bear Calpine's name and also feature 10,000 sq. ft. of retail space. Upon the building's completion in the fourth quarter of 2003, Calpine will relocate more than 1,100 employees from various Houston locations.
Los Angeles-based Cushman Realty Corp. represented Calpine.
Designed by the Houston office of Hellmuth, Obata & Kassabaum, the granite-clad monolith will have 24 floors of office space rising above a 900-car enclosed garage. The building will have floorplates of approximately 26,500 sq. ft.
In Chicago, Hines and JPMorgan Fleming Asset Management, on behalf of a large public pension fund, have acquired Quaker Tower at 321 N. Clark St. in Chicago's CBD. The 35-story, Class-A office tower was acquired from locally based Shuwa Riverfront LP, which purchased the project in 1989.
Built in 1987, the 840,000 sq. ft. tower is currently 95% leased — 50% to The Quaker Oats Co. and 20% to law firm Gardner Carton & Douglas. But both Quaker and Gardner Carton & Douglas are vacating the building in 2002, leaving more than 650,000 sq. ft. of contiguous space vacant. Washington, D.C.-based Gardner Carton & Douglas' Chicago office will relocate to 200,000 sq. ft. in Hines 191 North Wacker development.
And then there was one: Boeing lands in Chicago
The race to attract Boeing's corporate headquarters narrowed to three cities by the beginning of May. Denver, Dallas and Chicago all vied for the crown jewel of corporate relocations as Boeing forsook its Seattle roots. In the end, Chicago's amenities and a $60 million incentive package from the state of Illinois and Chicago sealed the deal.
Boeing will lease 270,000 sq. ft. at 100 North Riverside Plaza along the Chicago River. Owned by New York-based Lend Lease Real Estate Investments, the Boeing lease brings 100 North Riverside to near full occupancy. The aerospace giant will occupy 11 floors in the 36-story tower, which was formerly the headquarters of Morton International. The John Buck Co., Chicago, represented Lend Lease, while Los Angeles-based Cushman Realty represented Boeing in its site-selection efforts. Boeing plans to complete the move by early September.
Mack-Cali keeps acquisitions close to New Jersey home
Cranford, N.J.-based Mack-Cali Realty Corp. has acquired Maple Plaza I and II in Parsippany, N.J., for $48 million from Atlanta-based Lend Lease Real Estate Investments Inc. The Class-A office buildings total 295,000 sq. ft.
The 3-story properties are located on a 20-acre site in the Mack-Cali Business Campus. The buildings are 92.6% leased to 17 tenants. Mack-Cali's latest acquisition increases its holdings at the Business Campus to 1.5 million sq. ft., and increases its holdings in the Parsippany submarket to 14 buildings totaling 2 million sq. ft. Mack-Cali also owns or has interests in land in the Parsippany area that can support more than 2 million sq. ft. of office development.
Rubenstein, too, keeps latest deals close to home
The Rubenstein Co. has big plans for suburban Philadelphia.
The locally based company has acquired a 1.4 million sq. ft., Class-A office/research portfolio from Wyeth-Ayerst Pharmaceuticals Inc. in Radnor, Pa. The portfolio previously served as the corporate headquarters for Wyeth-Ayerst and is located at the intersection of the Interstate 476 and Pennsylvania Route 30 in the center of Philadelphia's Main Line. Rubenstein will rename the campus Radnor Financial Center.
Wyeth-Ayerst, a subsidiary of Madison, N.J.-based American Home Products Corp., will remain in most of the buildings through 2003, and then will relocate to its new headquarters campus in Collegeville, Pa. As Wyeth-Ayerst vacates portions of the portfolio, Rubenstein will begin renovations and improvements to the properties. Upon completion, the total investment will be approximately $270 million.
Rubenstein has begun to market for sale Wyeth's research laboratory complex located at 145 King of Prussia Road, which will be vacated by the end of the year. In addition, Rubenstein will begin leasing approximately 162,000 sq. ft. available at 201 King of Prussia Road to third-party tenants. The company plans to completely redevelop the property.
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