Reinsurance Group of America Inc. recently held a groundbreaking ceremony for its new global headquarters in Chesterfield. The new 405,000-square-foot complex will include two five-story office towers, each of equal size. The two buildings will be linked by a two-story atrium lobby.

Located at 16600 Swingley Ridge Road, the headquarters will feature state-of-the-art security systems, a café capable of seating 500 people and a 2,500-square-foot fitness facility. The site was chosen by Reinsurance Group of America with growth in mind, and the new complex will include room for the workforce expansion the company anticipates over the next several years. To support future growth in the long-term the site has enough space for another office building.

“Breaking ground on our new global headquarters is a great way to celebrate RGA’s 40th anniversary. Even with our entire St. Louis workforce in the new building, it will still have room for a significant number of additional associates to satisfy our planned growth,” said Greig Woodring, president and Chief Executive Officer of RGA. “We are very happy to make this commitment to Chesterfield and the St. Louis area,” he said.

St. Louis County Executive Charlie A. Dooley said, “I am proud to partner with RGA and help them grow in St. Louis. I see great things ahead for this company. Honestly, one of the best parts of my job is helping tell stories of people doing good work and helping shape our region for generations to come.”

The builder of the project is Clayco, Inc. and the architects are Fox Architects and Gensler. The project is scheduled to be completed in December 2014.

Photo Courtesy of: www.rgare.com

by Adriana Pop, Associate Editor

Pittman Partners LLC is planning a $90 million commercial and residential hub in Zionsville, the Indianapolis Business Journal reports.

Called The Farm at Zionsville, the mixed-use venture will be built on a 62-acre parcel of farmland located at the southwest corner of Michigan Road and Sycamore Street. The proposed development consists of 122,000 square feet of retail space anchored by a specialty grocery store, restaurants, offices, 400 multifamily residential units and six single-family estates.  Brent Davis of CSO Architects is in charge with the project’s design.

Developer Steve Pittman, whose family has owned the land for more than 30 years, told the newspaper that he and his brother, Chad, wanted to build something appealing to both retailers and residents.

“We want to create a place people want to come to,” he said. “Not just for dinner or shopping, but to hang out with the family.”

Zionsville’s Plan Commission is expected to review the developer’s proposal on June 17. If approved, the project will go before the Town Council for a final review.

It remains to be seen whether the housing units within The Farm at Zionsville will be rental, owner-occupied or both. According to Phoenix-based Applied Economics, the project is expected to be built within three to five years, support 480 jobs and 550 residents.

Photo credits: Pittman Partners LLC/CSO Architects

by Adriana Pop, Associate Editor

The Florian Companies, along with Hyde Street Holdings and Banner Apartments are planning to develop a 224-unit, four-story apartment building near Moore Square in downtown Raleigh.

According to the NewsObserver, the project will be located on a vacant 2-acre lot currently owned by Gordon Smith III. The development group intends to close on the purchase of the site by the end of the summer.  

Called The Lincoln, the new development will include a mix of one- and two-bedroom units, as well as a 321-space parking deck, a pool and an interior courtyard. JDavis Architects of Raleigh is the designer of the project.

If approved by the Raleigh Planning Department, the complex would become the area’s second major residential development, trailing only the 320-unit apartment tower proposed for the southwest corner of Martin and Blount streets.

“I think downtown Raleigh is really going through a tremendous boom in its progression and its desirability,” John Florian, president of The Florian Companies, told the newspaper. “So we really think there are a lot of drivers that are going to continue to drive demand for housing in downtown Raleigh right now. And over the long run it’s going to get better and better.”

Data from Karnes Research and the Triangle Apartment Association shows that the city’s downtown area has about 1,202 apartments under construction and more than 1,500 on the drawing board.

In multifamily transaction news, Trade Street Residential, Inc. has purchased the newly-built 256-unit Woodfield Creekstone apartment community (pictured) in Durham for $35.8 million.

Completed in April 2013, the garden-style property is currently 92.6 percent leased and 83.6 percent occupied. Amenities include a clubroom with cyber cafe, a business center, a resort style pool and pool lounge, as well as a fitness center and movie theatre.

The acquisition was partially funded with a new $23.3 million 10-year term first mortgage at a fixed interest rate of 3.88 percent, the company announced.

Photo credits: www.woodfieldcreekstone.com

The 136-unit Pinewood Pointe Apartments has recently been refinanced by a $6.75 million Fannie Mae fixed-rate, affordable loan provided by Centerline Capital Group.

The fixed-rate loan has a 12-year term, 9.5-year lockout, and a 30-year amortizing schedule. The borrower is SP Pinewood LP, a Florida limited partnership. The proceeds from the loan will be used to refinance existing tax-exempt bonds, which were also financed by Centerline, which is a subsidiary of Centerline Holding Co.

The affordable multifamily property, originally built in 1991, consists of 24 two-story apartment buildings and a clubhouse, with 48 units being garden style and the other 88 townhouse style apartments. Amenities include a clubhouse/leasing office with business center, common laundry room, a community pool, two children’s playgrounds, car wash area and picnic areas. Pinewood Pointe Apartments was acquired and renovated in 2007 with tax-exempt bonds issued by Florida Housing Finance Corp. and equity from the sale of 4 percent low income housing tax credits.

“The property is well-located in a desirable residential neighborhood with high=quality development surrounding the property and easy access to major employers, supportive commercial uses and recreational amenities,” noted Jim Gillespie, managing director at Centerline. “The borrower is a repeat Centerline client that is a very experienced multifamily developer, owner and manager. At Centerline, we continuously look to identify affordable housing opportunities that are attractive to our investors and also make a significant impact on the communities where they exist.”

Image via www.pinewoodpointe.com

A 5,000-acre master-planned community planned for the southeast fringes of metro Tucson is back on track. Dubbed Rocking “K” Ranch, the property was once an active cattle ranch, and adjoins the 66,947 acre Saguaro National Park East.

The Rocking “K” development, which initially included 10,000 homes, four golf courses, three resorts as well as extensive commercial and industrial development, has been on hold for almost a quarter of a century as market conditions slumped. Facing opposition from several environmentalists, wildlife advocates and neighborhood groups, the project was eventually reshaped and is now expected to include 2,000 to 3,000 homes, one golf course and one resort, a 50- to 75-acre commercial center and smaller areas of commercial development.

Equestrian and pedestrian trails will be integrated throughout the community, along with recreational areas and preserved open space which will take up more than 50 percent of the project.

Determined to capitalize on current demand, developers plan to start construction on the large-scale residential complex within two years. “I think Rocking K will be developed as a very nice master-planned community, with integrated open space, great trails, good school sites and a good commercial center. It still has most of the attributes it always had, although not as much of a resort capability as it had before,” Chris Monson, president of Rocking K Development, told the Arizona Daily Star.

Meanwhile, Aerie Development LLC, a real estate company focused on the development of single-family-style rental homes, is set on enlarging its Tucson footprint by adding three more complexes to its portfolio.

Aerie 1000, at 1000 W River Road, will offer one-, two-, and three-bedroom single-story, detached luxury rental homes with private rear yards; Aerie Preserve on Orange Grove and Mona Lisa roads will include 184 units; and Aerie at Sabino & River, near Sabino Canyon and River roads, will feature 59 units on the southwest corner and 200 units on the southeast corner.

Aerie Development opened its first Tucson complex in March 2012 on Tanque Verde Road and its second, near Ina and Thornydale roads, earlier this year. Both complexes are fully leased and the new properties are pre-leasing at a fast pace, according to the Arizona Daily Star.

Photo credits: Aerie1000 official website

It has been a great week for Memphis green initiatives. One of the biggest news for those with environmentally friendly mindset was Memphis Mayor AC Wharton’s announcement of plans to implement a network of protected bike lanes in Memphis as part of the city’s commitment to the Green Lane Project.

Memphis, a city that only two years ago was the chart-topper of Bicycling Magazine’s worst cities for biking in the US, is now considered to be best-improved for bicycling. Most credit Mayor AC Wharton’s advocacy for biking. His newly-presented Complete Streets Policy, the first-ever in in Memphis, sets a two-year timeframe to build 15 miles of green lanes and various new bike facility installations, starting in summer of 2013. Green lanes are dedicated roadway bike lanes, generally separated from both car and sidewalk traffic by planters, posts, curbs or parked cars.

The city of Memphis currently has no green lanes–nationally, green lanes had been scarce until 2011, when only a total of 62 miles existed. Thanks to recent initiatives, such as the 2012-launched Green Lane Project helmed by Bikes Belong Foundation, green lane implementation has accelerated: 2012 estimates show 32 cities engaging in the effort to bring that number up to 102, with the number of green lanes expected to increase by another 100 in 2013. The 2011-released Urban Bikeway Design Guide by the National Association of City Transportation Officials had a major impact as well, as it gave basic instruction to cities on how to adapt existing biking facilities and design features to create safe green lanes.

In other green news, The Memphis Daily News reports that newest residence hall on the Rhodes College campus has received Silver LEED certification by the US Green Building Council. Launched in August, West Village is a 141-bed student housing facility located on Rhodes’ Middle West side. Comprised of 22 deluxe suites, it features community amenities such as two conference rooms, sizeable common room with kitchen and laundry facilities on each floor. Units feature four to eight beds in single or doubles rooms. West Village houses upper-class students.

Image credits: the Rhodes College Facebook page

Leading national apartment investment and management company Bell Partners Inc. recently acquired the award-winning Landmarking at Universal Apartments in Orlando, Fla. for an undisclosed amount. The transaction, which closed on May 15, also brought a new name for the 310-unit luxury community, with the new owners renaming it Bell at Universal.

The acquisition brings Bell Partners’ multifamily investment mark up to $150 million.

Joe Cannon, vice president of Bell Partners, said: “Bell at Universal is an upscale community which is uniquely positioned within the Orlando market, and we are pleased to acquire this highly desirable property. As a key acquisition in one of our select target markets, Bell at Universal is an excellent strategic addition to our central Florida portfolio.”

Bell at Universal, winner of the 2012 Aurora Award for Architectural Excellence, is a 310-unit garden-style community offering one- and two-bedroom homes with available den options. Its location places it just steps away from Universal Studios Orlando and 15 minutes from downtown, making it accessible from South Kirkman Rd., Florida’s Turnpike and I-4.

The community’s luxury amenities include a resort-like swimming pool, clubhouse, cabana with a fireplace, fitness center, theatre room, and internet café. The community is located in close proximity to retail destinations, entertainment venues and employment centers.

Marcus & Millichap’s latest Orlando market report reveals that multifamily transaction velocity remained practically unchanged over the past 12 months, but the number of deals was one of the highest recorded since before the recession.

During the past year, the number of properties selling for more than $10 million has modestly increased, while deals from $1 to $10 million have declined. Buyers are motivated to purchase metro Orlando properties as the job market keeps strengthening and property operations seem to be improving.

Chart courtesy of Marcus & Millichap

Image via Bell Apartment Living

Rumors that CBRE Global Investors may have purchased the 31-story Three Ravinia Drive office tower could be confirmed, as owner Colonial Properties Trust just announced selling the building for $144.3 million.

CBRE Global Investors—currently Atlanta’s largest owner of office buildings—is not the first company to emerge as a potential buyer; Crocker Partners also came close to buying Three Ravinia a couple of years ago, but fears that anchor tenant InterContinental Hotels Group  might not renew its lease drove them away from the deal.

Originally developed by Hines in 1991, Three Ravinia Drive has been a part of Colonial Property Trust’s portfolio since February 2002. The 31-story office building encompasses an impressive 813,145 square feet of space and features exclusive amenities, such as the largest indoor botanical conservatory in the Southeast—which spreads over seven stories.

The Class A office building is adjacent to the Crowne Plaza Hotel, access being provided to three top restaurants, the Grand Ravinia Ballroom, and a state-of-the-art amphitheater. A walkway connects Three Ravinia Drive to the Ravinia Club, offering spa, fitness, conference and concierge services.

Birmingham, Ala.-based Colonial Properties Trust was looking to dispose of the property in order to shift focus towards the multifamily industry. “The disposition of Three Ravinia is a significant step in the execution of our multifamily-focused strategy and strengthens the company’s balance sheet,” stated Thomas H. Lowder, chairman and chief executive officer of Colonial Properties. “Following the disposition, 95 percent of the company’s net operating income will be generated from our multifamily portfolio.”

According to company officials, the property was unencumbered, and sales proceeds were used to repay a portion of the outstanding balance on the company’s unsecured credit facility. On March 31, 2013, Three Ravinia Drive was 92.1 percent occupied.

Image courtesy of Hines

For more market data on Atlanta, click here.

With the sale of the Mondrian Los Angeles hotel to Pebblebrook Hotel Trust now closed, the Los Angeles real estate investment market continues to move forward, most recently with Phoenix Realty Group’s purchase of three apartment properties in San Bernandino and Highland.  The total value of the transaction was $21.5 million for the once foreclosed-upon properties.

The 432 apartment units were bought from an affiliate of Fannie Mae, according to a statement from the Los Angeles-based real estate firm. Occupancy for the properties is at 95 percent, up from the less than 80 percent they measured before the Fannie Mae affiliate took over management.

Meanwhile, Los Angeles-based Jacobs Engineering Group has taken on the $122 million renovation of the Federal Building at 50 United Nations Plaza in San Francisco. Jacobs Engineering Group will handle the 75-year-old building that hasn’t had a thorough renovation since its completion. As it is a government building, the landmark deal will be an “indefinite quantity/indefinite delivery” deal according to Jacobs Engineering Group. The current one-year deal includes four one-year options to extend the agreement.

The $137 million deal doesn’t mean the hotel will be re-branded, as a 20-year management agreement has been sealed that means the facility will operate under the same brand. The managing company, New York-based Morgans, has already stated that it has used a part of the proceeds to retire an outstanding $103.5 million mortgage debt it had on Mondrian Los Angeles.

Los Angeles real estate has had quite a couple of positive signs from the office segment, while other sections have underperformed. News this week includes reports about the hotel industry, especially the well known business-lunch locale—Saddleback Inn. The city called the four buildings under the Inn’s ownership at East First and Lyon streets a threat to public safety and has issued a 60 day deadline to demolish the site. The owner, Saddleback Inn LLC, and the landlord, the Santa Ana Elks Lodge, have 10 days to respond to the order.

The rising demand for industrial space in the Baltimore area has resulted in an increase in speculative building projects. Liberty Property Trust announced on May 21 the acquisition of 18 acres of land at 7149 Ridge Road in Hanover, Maryland. The company owns and manages nearly three million square feet of office and industrial space in Greater Baltimore Metropolitan area and plans to use the land for the future development of a multi-tenant industrial building.

The new building will feature concrete tilt up walls, 210’ depth with 130’ truck courts and 1.5 per 1,000 parking spaces. Its location is also important. Liberty said the property will have exposure to the new Hanover extension road as part of the new Hanover Road and Interstate 295 Interchange proposed by the State Highway Administration.

If approved, the new interchange will provide quicker access to the Baltimore-Washington International Thurgood Marshall Airport and will open up opportunities for development and employment in the area.

“This land acquisition represents a key milestone as we develop our pipeline and execute our strategy to grow Liberty’s industrial portfolio in this market,” Lisa Sullivan, vice president and city manager for Liberty in the region, said in a statement for the press. “The property at 7149 Ridge Road, when developed, will be the site of Liberty’s fifth building in the area.”

Bill Holland of Tri-Star Brokerage, LLC brokered the deal. Liberty did not disclose the price of the transaction.

Less than half a mile from the newly acquired land, Liberty Property trust is developing two other new Class A industrial buildings. Located at 7460 and 7462 New Ridge Road in Liberty’s Hanover Crossing industrial park, the two buildings offer together almost  243,500 square feet of space. They feature 28-foot clear ceilings, 50-foot spaces between columns, and drive-in loading for trucks. Liberty Property Trust is constructing them in tandem and expects to complete the two buildings by the end of the year.

In 2008, the company opened Highpoint 100, a two-building industrial complex on Coca Cola Drive. Together, the buildings offer 225,000 square feet of space. Both are fully leased.

Charts courtesy of CBRE.