Rosemont, Ill.-based ACG Equities has made a 100 percent equity purchase of Atlanta’s Vinings Main mixed-use commercial and residential condominium development, which fell into foreclosure last December. The $24 million acquisition was the first allocation from the firm’s Midwest-based $150 million private equity fund.

ACQ principal and Atlanta office managing director David Lang said that the company will in the future seek to acquire value-oriented income-producing developments as well as residential properties.

Vinings Main was built in 2008 at a pricetag of $57 million. It has 34,000 square feet of condominium space, 17,000 square feet of retail space and a 461-space parking deck. Retail tenants include the Social Vinings restaurant.

ACG operates as a sponsor and operator specializing in value-added commercial property acquisitions and dispositions for private investors and equity funds. In addition to its headquarters, it also has offices in the Atlanta, Denver and Minneapolis markets and plans to open a Washington, DC area office.

In Aurora, Colo., The Children’s Hospital has commenced construction of a new 350,000-square-foot tower at its facility less than ten miles west of Denver. The $230 million expansion project will address a demand that has been on the rise since 2007 when the hospital opened its new location at the 227-acre Anschutz Medical Campus, a recently developed education, research and patient care complex.

According to officials, Children’s Hospital has experienced an annual increase in inpatient admissions of 10 percent or more over the last three years. “When we first moved to the Anschutz Medical Campus in September 2007, we wondered if our patients would follow us,” Jim Shmerling, President and CEO of The Children’s Hospital Colorado, told CPE. “The response has been a resounding, ‘yes!’ Here we are three years later, about to build another ten floors, about five years ahead of schedule.”

Phipps/McCarthy is handling construction of the East Tower, which will ultimately accommodate the addition of 500 patient beds. The new 10-story building, designed by ZGF Architects and H+L Architecture, will meet standards for LEED certification.

Children’s Hospital is hardly alone in its quest to provide additional space to address demand–demand that is only going to increase with the 32 million uninsured Americans that will become insured in a few years as a result of healthcare reform. Turner Construction Company broke ground this week on a $161 million, 216,000-square-foot patient tower at the Inova Fairfax Hospital campus in Falls Church, Va. In June, the U.S. Department of Veterans Affairs kicked off development of a 1.5 million-square-foot replacement medical center in New Orleans, and in May, work commenced on the $750 million, 1.2 million-square-foot Wishard Memorial Hospital replacement hospital in Indianapolis, Ind.

The new tower at Children’s Hospital in Aurora will open in late 2012, bringing the hospital’s total footprint at the Anschutz campus to nearly 1.8 million square feet.

Implementing its plan to expand its Cambridge, Massachusetts footprint, Microsoft has signed a lease for 113,000 square feet of first-class office space at One Cambridge Center. Occupancy at the six-floor parcel is slated for late summer 2010.

The lease is part of the expansion of Microsoft’s New England Research & Development Center in Kendall Square. Cambridge Center’s owner and developer is Boston Properties, Inc.

“We’re delighted that Microsoft is expanding our presence here,” Microsoft New England Research & Development Center senior director Sara Spalding said. “We’re pleased to take this step toward our goal of creating a campus in Cambridge that can attract the best tech talent that this region has to offer and to further contribute to the region’s vibrant tech community.”

Jones Lang LaSalle senior vice presidents John Osten and Peter Bekarian, along with associate Molly Heath, negotiated the long-term lease for Microsoft. Boston Properties was represented by senior vice president David Provost and vice president Philip Dorman.

Wilson Commercial said Tuesday that it had inked leasing assignments for 13 retail centers totaling more than 2 million square feet in the first six months of 2010.

Those assignments include three new developments, five redevelopment projects and five existing centers. The company also completed 32 leases totaling 600,000 square feet during the first half of the year.

The largest assignments include the 487,370-square-foot Commons at Quartz Hill in Lancaster, California, the 218,503-square-foot Crossroads at 395 in Victorville, California and the 224,783-square-foot Granada Village in Granada Hills, California.

“During this challenging economic climate, landlords understand the importance of retaining a firm who has the experience and knowledge to improve occupancy at their center,” Wilson president Chris Wilson said. “We have a deep understanding of the landlord and tenant side of the business, enabling us to deliver results in this ongoing challenging market.”

Wilson currently oversees leasing at 90 retail properties totaling 8.3 million square feet in Southern and Central California.

Leasing in Manhattan’s office market continues to pick up, and Healthfirst is one of the latest to sign a deal for a substantial amount of space. The nonprofit managed care organization has just committed to approximately 172,600 square feet at 100 Church Street, a 1-million-square-foot tower owned by Manhattan’s largest office landlord, SL Green Realty Corp.

Under a 20-year lease agreement, Healthfirst will maintain its headquarters on four floors at the 21-story building at 100 Church Street, downtown. The property has been in SL Green’s portfolio since January of this year when the REIT became sole owner on the heels of a foreclosure of the senior mezzanine loan on the building.

Real estate services firm Newmark Knight Frank represented SL Green in the lease transaction–which will close pending customary review and the green light from the property’s lender–while Jones Lang LaSalle stood in for Healthfirst. Terms of the agreement have not been disclosed, however, available office space at 100 Church Street is presently being marketed at $36 per-square-foot.

There have been some dramatic changes in leasing activity in Manhattan over the last couple of months. The second quarter marked the strongest quarter for new lease deals since the third quarter of 2006, according to a report by real estate services firm Cushman & Wakefield. Additionally, the vacancy rate dropped from 11.6 percent in the first quarter to 10.8 percent in the second quarter, marking the market’s first decline in the vacancy rate in three years. The list of major office deals in the second quarter includes Tiffany’s signing of a 15-year lease agreement for its relocation to 260,000 square feet at 200 Fifth Avenue in Manhattan’s Flatiron District, and law firm Proskauer’s commitment in May to 400,000 square feet at 11 Times Square in Midtown, the largest office lease in the submarket this year.

The smell of recovery is growing stronger.

Q: What will be the main elements of Jones Lang LaSalle’s global strategy for the next several years? In particular, which of your service lines appear to be especially well positioned for growth?

A: If you can have a “good” recession, we’ve had one. We did a very astute acquisition of the Staubach organization before the recession, and we were able to integrate the two businesses. We continue to be able to pick up on the momentum that we had during 2006, 2007 and 2008. So we start the 2010-2015 period with a lot of confidence and a lot of momentum.
Obviously, the agenda is growth. We see a lot of opportunity for LaSalle (Investment Management) to grow its investment management business worldwide. … We see growth opportunities for our corporate services business. For us, it’s a very appetizing strategic menu for the next couple of years.

Q: Generally speaking, what do you expect to account for the majority of Jones Lang LaSalle’s growth globally over the next few years?
A: Our principal driver is organic growth. We have set the entire business (plan) by that agenda. If you have a business that’s focused on organic profit growth, you’ve got the right sort of mindset across the organization. Selectively … as our confidence in the business and economic recovery is strengthened, we will be looking at acquisition growth.
Clearly, the economies that are internationally in better shape are the BRIC (Brazil, Russia, India and China) economies. We’re in a very fortunate position of having been in these countries for 15 and 20 years, such as Russia and China. That gives us a very good position in these economies.

Q: By all accounts, the global economic cycle is in a time of transition, if not turmoil. Which concerns should be foremost for real estate executives around the world?

A: The good news is, the depths of the recession are behind us and economies are growing. Although things are moving forward, there will be periods where individual countries or individual businesses will go backward for a while.
You can’t drive a business forward by looking in the rearview mirror. We are moving the business forward—we are committed to a growth plan. … We are just getting on with life, and that’s what I believe the rest of the business world has to do.
To my mind, there’s a great opportunity for real estate. Gradually, over a period of time, transparency in all markets is improving. … By transparency, (we mean) honesty in dealing with people, (simple, understandable business structures), legal guidelines, and visibility in pricing and returns.

Q: On another front, what operational and strategic challenges are on your mind these days?

A: (In running) an advisory business, an investment management business, there is a whole raft of continual improvements. The challenge is in technology, in training people, in hiring the best people, in joining up businesses between countries.
All of these are challenges that any business wanting to grow can address. We at Jones Lang LaSalle have always chosen a comprehensive approach to the demands of growing a business. Because as a business we are very collaborative, we’ve deployed methods for moving all these agendas forward.
The big challenges of developing all those areas of a business are ones that we are (approaching) on an increasingly worldwide basis. To me, the challenges are managing a very broad-based business going forward in the most efficient possible way, making sure that the best practices are spread. We are increasingly finding ways of connecting up our businesses, client needs and business systems around the world.

The green movement is still strong, but most owners and managers of commercial buildings over 10 years old are missing out on a great money-saving opportunity, according to Pike Research’s “Energy Efficiency Retrofits for Commercial and Public Buildings” report. If the commercial property sector were to follow a 10-year energy retrofit agenda, it could ultimately reap over $41.1 billion in savings each year.

There’s a lot of space to be tackled. In the U.S., the pool of commercial buildings, which account for much of the country’s energy consumption and carbon emissions, total a whopping 79 billion square feet, 80 percent of which exists in structures that are over 10 years old. As per the report, the long-term financial and environmental benefits of retrofitting commercial and public properties is enormous, however, only a small percentage of commercial building owners have taken it upon themselves to engage in an energy retrofit program.

“Most of the focus on efficiency retrofits has been on public buildings,” Eric Bloom, a research analyst with Pike Research, told CPE.

Factors that have kept the commercial sector trailing the public sector in efficiency retrofits are familiar. “Awareness is an important issue for private building retrofits,” he adds. “And even with Energy Performance Contracts where owners don’t have to invest the money up front for retrofits, there is a reluctance to participate. It’s an awareness issue and a financial issue.”

While the 10-year program Pike Research analyzes would lead to an annual savings in energy expenses of $41.1 billion, it would cost commercial property owners a $22.5 billion annual investment to institute the changes over that 10-year period.

The economic slump has done little to help the situation, as commercial property owners have less financing available for investing relatively large sums of money in major energy efficient upgrades today, in return for substantial savings down the road. “The returns in the public sector aren’t what commercial building owners want to see,” Bloom notes. “The government will accept that it may take 10 to 20 years to see a return on the investment, but private owners are reluctant to invest in anything with more than a four- to five-year payback period; they may not want to hold on to a property for longer than that.”

However, if the prospect of substantial savings in energy expenses in the long run is not reason enough to entice the reluctant, energy retrofitting presents a reward that is more immediately tangible. Commercial building tenants and investors are becoming increasingly focused on the benefits of environmentally friendly properties, so the greener the building, the greater the value.

“The potential exists in the private sector for sustained growth and energy retrofits,” Bloom said. “The government has a stronger stomach for risks but the private sector is reaching the point where they see the benefits of this model. We’ll see an increase in private sector participation within the next four to five years and beyond. It will definitely catch up to the public sector, but it’s a matter of time.”

As part of its relocation from Woburn, Mass., Kiva Systems has leased 163,000 square feet for eight years at 300 Riverpark Drive in North Reading, Mass. Jointly owned by Divco West and Taurus Investment Holdings, the building was acquired in September 2008 along with its adjacent neighbor, 400 Riverpark Drive. Together the two total 359,000 square feet.

David Pergola and Jason Levendusky of CB Richard Ellis represented Divco West and Taurus, while Brooks Murphy and Sean Lynch of Jones Lang LaSalle represented Kiva.

“When we acquired this property, we saw tremendous value in its leasing profile and location,” Divco managing director James Teng said when announcing the news. “This has been borne out by Kiva’s decision to move here.”

The property is situated on 34.3 acres a quarter of a mile from Interstate 93 and 16 miles north of downtown Boston. Other tenants include Crowe Paradis and Teradyne.

The Christian Science Board of Directors at The First Church of Christ, Scientist, has revealed a draft of a revitalization plan for the Christian Science Plaza in Boston, home to the church’s global headquarters. The proposal includes plans for the development of 950,000 square feet of residential and commercial facilities.

Surrounded by Boston’s Back Bay, Prudential, South End and Fenway neighborhoods, the Plaza encompasses 14.5 acres and offers 10 acres of open space that is accessible to the public. Among the property’s seven existing buildings are two centerpiece structures, the iconic Original Mother Church, built in 1894 and the Extension church, which was developed in 1906. As per the proposal, all existing buildings will remain intact.

The goal of the revitalization endeavor is threefold. One facet of involves the enhancement of the site’s open space by reopening the historical pathway leading to the Original Mother Church with the creation of a pedestrian crossing through–not over–the reflecting pool. Another goal of the plan is to increase the property’s environmental sustainability through a variety of means, including the planting of additional trees to and grass to reduce the urban heat effect.

Real estate development, however, is the key part of the revitalization plan. The church will make better use of the property’s underutilized space with the construction of new buildings totaling as much approximately 950,000 square feet. A site near the intersection of Belvidere and Dalton streets and another site off Huntington Avenue have been identified for development.

Two buildings are expected to sprout from the Belvidere/Dalton Site, creating residential units, a hotel, ground-level retail space and, if the market demands, office space. Currently, Boston has no shortage of office space. According to a report by real estate services firm Grubb & Ellis Co., the average office vacancy rate in the Boston area reached 14.4 percent in the second quarter. At the Huntington Site, the Church will erect a single, 150,000-square-foot residential building that will include affordable housing, which, unlike office space, is always in demand.

The organization has outlined the many public benefits of the new development projects, including additional affordable housing, greater street-level activity with the addition of new retail offerings, increased tax revenue and the creation of temporary construction jobs and permanent positions.

“The Church is proud to be part of Boston’s progressive vision and noble history,” Mary Trammell, Chair of the Board of Directors, noted in a prepared statement, “and to continue a tradition of contributing to this City’s beauty, inspiration, and progress.”

Courtesy Flickr Creative Commons user kla4067

Real estate services firm Avison Young has bought Atlanta-based Hodges Management and Leasing Co., which provides third-party property management and leasing services to real estate owners.

The acquisition not only expands Avison’s coverage in the Atlanta region, but also increases the company’s North American property management portfolio. The two companies’ combined portfolio totals 50 million square feet of retail, industrial and office properties in Canada and the U.S.

Effective immediately, Hodges’ seven principals will become principals of Avison Young. These are director of management services Todd Blalock, Agency Leasing Group members Chet Koenig, Tom Crowe and Bruce Logue, director of financial management Krista Reid, director of project management Chris Stanley, and controller Belinda Lauderbaugh.

Financial terms were not disclosed.

“As part of our southeastern U.S. expansion, and our commitment to provide our sophisticated clients with leasing and management solutions in addition to services, the combination of Hodges and Avison Young demonstrates once again the ongoing execution of our clearly defined strategy,” Avison chair and CEO Mark Rose said when announcing the news.

Since its inception in 1978, Avison has grown to incorporate 700 employees in 21 offices across Canada and in the U.S.