CPN - February 2009 - (Page 15)

Associates, and the industrial market absorbed 10.8 MSF. The Metroplex also added 35,100 jobs between November 2007 and November 2008, the secondhighest gain in the country, according to the Bureau of Labor Statistics. Still,as with most U.S.metropolitan areas, uncertainty hangs over the market.“2009 is such a tough year to predict, with the debt markets in such a deep freeze,” Fewin said. “It affects not only owners’ decisions but tenant expansion plans,as well.” Lease: Pioneer Natural Resources Co. signed a 293,000-SF office lease at The Towers at Williams Square in Irving’s Las Colinas Urban Center. The lease will run through 2020. Mark Dickenson of Cousins Properties Inc. represented the landlords, Cousins and TIAA-CREF. Larry Toon and Paul Whitman of The Staubach Co. represented the tenant. Lease rates average $21 PSF. Sale: Tarrant County College DisTarrant County College Campus Los Angeles Leasing, Sales Slam to Screeching Halt The first half of 2008 produced a fairly active leasing and sales pace in Los Angeles,but then things came to a screeching halt, according to Martin Pupil, senior managing director for Colliers International’s Los Angeles Basin office. “I’ve been through other recessions, but I’ve never seen things stop so suddenly,” he said. Deals transacted during the second half occurred mostly out of necessity,he said,noting that CABI Developers L.L.C. in December sold 4.5 MSF of office space, predominantly in Los Angeles County, for $1.4B, after reported trouble making debt payments on the properties. He believes the next six months will look like the past six, though cash-flush buyers may emerge after midyear.“Buyers may believe we’re at 90 percent of the bottom and that’s close enough,” he said. Lease: Fox Interactive Media signed a 12-year lease with Lincoln Property Co. and ASB Real Estate Investments for 421,000 SF of office space in Horizon at Playa Vista for $350M. Steve Walbridge of Cushman & Wakefield Inc. represented Lincoln Property, and Studley Inc. represented the tenant. Sale: A joint venture of D. E. Shaw & Co. and Woodridge Capital L.L.C. acquired the 726-key Westin Century Plaza in Century City from a joint venture of Sunstone Hotel Investors Inc. and Global Hyatt Corp. for $366.5M. The buyers formed a development group, Next Century Associates L.L.C., that plans to raze the hotel and build a $2B mixed-use development. trict, represented by Jones Lang LaSalle Inc., acquired RadioShack’s Riverfront Campus, an 875,000-SF office complex in Fort Worth, for $238M from KanAm Grund. Development: UDR Inc. broke ground on the first phase of Vitruvian Park, a $1B, 99-acre multi-family, retail and commercial development in Addison. The company plans to begin occupancy in a year and to complete all phases by 2017. Horizon at Playa Vista Houston Energy City’s Fate Rises, Falls with Oil Prices Houston benefited from a booming energy sector in the first half of 2008.Though falling oil prices dampened economic activity in the second half, the market ended the year in fairly robust shape.Houston added 42,400 private-sector jobs between November 2007 and November 2008, the highest level in the nation. According to Delta Associates, the office market absorbed 3.2 MSF in 2008. Industrial absorption was also positive, at 8.3 MSF though signifi, cantly less than 2007’s 12.5 MSF . Waterlights District Lease: BHP Billiton Petroleum expanded and renewed its lease for 441,145 SF of office space in Four Oaks Place. Eric Anderson and David Baker represented the landlord, TIAA-CREF. Lou Cushman and Kevin Ray of Cushman & Wakefield of Texas Inc. represented the tenant. Lease rates average $23 PSF. Sale: Hines Real Estate Investment Trust Inc. purchased the 1.5 MSF Williams Tower office building for $271.5M from Fosterlane Holdings. Cushman & Wakefield of Texas represented the seller, and Hines was represented internally. Development: Historic Real Estate Inc. broke ground on the $700M Waterlights District in Pearland. Plans for the 1.9 MSF mixed-use project include condominiums, brownstones, luxury apartments, office buildings, retail space, restaurants, three luxury hotels, a conference facility, a public park and a statue of the 44 U.S. presidents. The park and gardens are slated to open in 2009. Development: Tishman Speyer Properties began construction on the first phase of the $1.2B Campus at Playa Vista office complex on behalf of joint-venture partner Walton Street Capital L.L.C. The initial segment will contain 325,000 SF and is targeted for completion during the fourth quarter. New York City Financial Crunch Exacts Toll emerge this year regarding By most accounts, the full Midtown West projects. force of the recession will hit New York City’s job market Lease: Viacom International and impact demand for office space this year, further shrinkInc.,represented by CB Richard Ellis Inc., renewed 1.3 MSF at ing leasing volume that fell 19 1515 Broadway in Midtown percent in 2008, according to through 2015. The owner, SL Cushman & Wakefield Inc. Green Realty Corp., was repreManhattan Class A asking sented internally. Sources estirents may slip 25 to 30 permate rent at $85 PSF. cent this year, Jones Lang LaSalle Inc. projects, and comSale: The General Motors petition for tenants will ratchBuilding at 767 Fifth Ave. in et up owner incentives. Midtown Manhattan comInvestment sales tummanded $2.8B from a bled 60 percent in 2008 joint venture of Boston from the record $47.8B Properties Inc., a fund two years ago, and declinmanaged by The Golding asset prices and a tight debt market will continue 175 Greenwich St. man Sachs Group Inc. to hamper sales. Construction and Meraas Capital L.L.C. The buyer was represented internally, starts will be few, but details may y 2009 • COMMERCIAL PROPERTY NEWS 15 Craig LaFollette, executive vice president for CB Richard Ellis Inc.’s local office, said the economy is subject to swings, though the massive and growing Texas Medical Center market has smoothed out those cycles. www .cpnonline.com • Februar http://www.cpnonline.com

Table of Contents Feed for the Digital Edition of CPN - February 2009

CPN - February 2009 Contents Starting Line Buzzworthy Office Data/Analysis Washington, D.C., Market Profile Ranking: Mortgage Banks & Brokerage Firms Top Deals of 2008 Mortgage Banking Mexico Brokerage Sustainability CPN-Nielsen Claritas Special Report Resource Guide

CPN - February 2009

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