CPN - February 2009 - (Page 16)

and CB Richard Ellis represented the seller, Macklowe Properties. Development: At the World Trade Center in Downtown Manhattan, Silverstein Properties Inc. started construction of 175 Greenwich St., a $1.4B, 71-story office tower, also known as Tower 3. Plans include 2.1 MSF of office space and 133,000 SF of retail space. San Francisco Financial Center Poised for Sublease Ramp-Up With the markets uncertain, SF renewal and expansion at 600 tenants have been signing short- Battery St., giving the firm the term renewals and extensions. entire building, which is owned That has an especial impact on a by NEBS Pension Fund and W.J. Wilkow. Cushman & city in which more than 60 Wakefield Inc. percent of commerrepresented cial office buildthe landings sold lord, and between 2006 Newmark and 2008, all Knight worth less Frank repretoday and most 5800 Third St. sented the tenant. financed with shortterm debt. A tenant’s lease decision can determine whether an Sale: CB Richard Ellis Investors, owner keeps or loses a building, on behalf of its Strategic Partners according to Kevin Brennan and U.S. IV L.P. fund, has acquired 500 Steve Barker, executive vice pres- Terry Francois Blvd., a 291,000idents & co-branch managers for square-foot Class A office building overlooking Mission Bay, for Studley Inc.’s local office. Sublease space has been $149M from developer Lowe building, adding to the 2 MSF Enterprises. CB Richard Ellis Inc. added to the market last year. brokered the deal. Much will come from the financial services industry. Asking Development: The Goldman rates have already fallen, especial- Sachs Group Inc. broke ground in January on 5800 Third St., a 340ly in the North Financial and South Financial districts, which unit mixed-income condominihave seen drops of 10 to 15 per- um project on the site of a former Coca-Cola bottling plant.The cent since year-end 2008. project, which includes 20,000 Lease: McCann Erickson World- SF of retail space, is located at a wide, a division of Interpublic stop on the new Third Street Group, signed a 12-year, 118,000- light-rail line. lease at Met 2, part of the $1B Metropolitan Miami mixeduse development. The firm, which plans to move in fall 2010, will pay annual rent in the midto high-$40-PSF range to the property owners, MDM Development Group and MetLife Inc. $375M. Nakheel and partner Fontainebleau Resorts L.L.C. will jointly operate the iconic 1,500key hotel, which reopened late last year after an extensive, $500M renovation. Development: The New World Symphony broke ground on a 107,000-SF, $200 million campus in Miami Beach’s City Center in January. The Frank Gehry design includes a 700-seat performance space, rehearsal rooms and offices.The symphoSale: In April, Met 2 Miami Nakheel Hotels ny is financing the project acquired a 50 perwith a mix of public and private funding, including a $90M cent interest in the Fontaineanonymous donation. bleau Miami Beach resort for Washington, D.C. Upholding a Reputation, District Outperforms Living up to its reputation for stability, the nation’s capital continues to outperform the country. But it, too, has been hurt by the economy’s woes. Few investment sales took place last year,while office leasing activity hit a longtime low of 5.2 MSF, according to Cushman & Wakefield Inc.Tenants are renewing or looking at options without committing, and the office sector has been negatively impacted by law firm mergers and consolidation among. Development has continued, and a third of the 10 MSF of office space under construction is preleased, according to Trammell Crow Co. managing director Tom Finan, but he does not expect any new projects to be added this year. On the other hand, the market saw 24,000 new jobs last year, half its historical number but still higher than many markets, according to Pete Larson, executive vice president of tenant advisory services for Transwestern. Locations inside the Beltway, though, are outperforming those farther out. (For more on D.C., see page 12.) Lease: On behalf of the Department of Justice,the General Services Administration leased 521,000 SF in Two Constitution Square, at 145 N St., N.E., in the Capitol Hill/NoMa market,for 15 years.StonebridgeCarras L.L.C. is building the 12-story property with Walton Street Capital. Studley Inc. represented the government. Cassidy & Pinkard Colliers represented the developers. Two Constitution Square South Florida Vacancy Still Rises as Development Slows 2008 was a quiet year for South Florida, characterized by a paucity of new development, an uptick in vacancy and a slowed investment market. The MiamiDade County office market saw negative absorption of 813,000 SF.Vacancy jumped to 12 percent during the fourth quarter—the seventh consecutive quarterly increase. Though the South Florida development pipeline is at a 16 Sale: Ralph Dweck purchased 300 New Jersey/51 Louisiana in the Capitol Hill/NoMa market from The JBG Cos. He paid $375M for the 461,261-SF property. Holliday Fenoglio Fowler L.P. represented the seller. Development: Boston Properties Inc. broke ground on a 430,000-SF office building at 2200 Pennsylvania Ave., N.W. The asset is rising on a 60-year ground lease from The George Washington University Hospital. The law firm Hunton & Williams L.L.P. has since signed a lease for 190,000 SF for 15 years.The project is valued at about $170M, according to market estimates. near standstill, vacancy is expected to rise as the struggling economy saps jobs. Mirroring national trends, unemployment in the area has been on a steady upswing, from 3.7 percent for the final quarter of 2007 to 6.1 percent at year-end 2008. Lease: In July, international law firm Greenberg Traurig L.L.P. agreed to a 15-year, 150,000-SF .cpnonline.com COMMERCIAL PROPERTY NEWS • Februar y 2009 • www 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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