February – Briefs/Leasing & Management

ExxonMobil Signs for 478 KSF at Hughes Landing; Citi Extends 2.6 MSF Lease at NYC’s TriBeca Towers; Whitestone REIT Signs Wal-Mart for 44 KSF in Phoenix; Tishman Speyer Signs Largest Lease in its History in Brazil; Valeant Takes 310 KSF for New HQ in NJ; SL Green Signs 266 KSF with Metro-North Commuter Railroad; SARES-REGIS Fills 800 KSF Distribution Building; NGKF Lands Three-Building Leasing Contract in Illinois; COPT Leases 150 KSF in Philly, Begins Redevelopment.

ExxonMobil Signs for 478 KSF at Hughes Landing

0214_CPE_Leasing_Exxon2ExxonMobil Corp. has signed leases totaling 478,000 square feet at Hughes Landing, a 66-acre mixed-use development being built by The Howard Hughes Corp. about 30 miles north of Houston in The Woodlands, Texas. The space will fill an entire 300,000-square-foot Class A office building and a portion of a second.

Hughes Landing on Lake Woodlands is planned to include as many as 11 Class A office buildings, shopping, dining, a hotel, Whole Foods and as many as 800 multi-family units. ExxonMobil’s new offices will be designed to LEED specifications by Kirksey Architects of Houston. Occupancy is expected for the first half of 2016.

Citi Extends 2.6 MSF Lease at NYC’s TriBeca Towers

An affiliate of Citigroup Inc. has signed an extension for its triple-net leases at 388 and 390 Greenwich St. in Manhattan’s TriBeCa neighborhood, according to SL Green Realty Corp. and partner Ivanhoé Cambridge, the buildings’ owners. The leases cover the entirety of both buildings, which total 2.6 million square feet and function as the headquarters for Citigroup’s Global Wealth Management and Global Trading divisions. The leases now extend through Dec. 31, 2035, and the agreement includes an option for Citi to buy the towers between Dec. 1, 2017, and Dec. 31, 2020.

Whitestone REIT Signs Wal-Mart for 44 KSF in Phoenix

A new Wal-Mart Neighborhood Market is coming to Phoenix, thanks to a lease secured by Whitestone REIT. The retailer signed for 43,619 square feet at Whitestone’s Marketplace at Central, a 111,000-square-foot community retail center at the intersection of E. Dunlap and N. Central avenues in Phoenix. Buildout has begun, with a planned opening for mid-2014. Other tenants at the center include Ross Dress for Less and Dollar Tree.

Tishman Speyer Signs Largest Lease in its History in Brazil

In the largest lease in Tishman Speyer’s history, Banco do Brasil will be taking all 953,000 square feet of office space in the developer’s three-building Green Towers project, now underway in Brazil’s capital city of Brasília. The tenant, also known as the Bank of Brazil, will be consolidating its headquarters at Green Towers Brasilia. The lease calls for the bank to occupy the project’s three 16-story towers as they’re completed in 2014, 2015 and 2016.

Valeant Takes 310 KSF for New HQ in NJ

Valeant Pharmaceuticals International Inc. is consolidating its multiple locations and moving into its new U.S. headquarters at Somerset Corporate Center IV, located in central New Jersey. The multinational pharmaceutical company has signed a long-term, 310,000-square-foot lease to occupy the entire center within SJP Properties’ 2.1 million-square-foot Class A complex in Bridgewater, N.J. The move follows Valeant’s purchase of global eye health organization Bausch + Lomb. The company is slated to move into the corporate building in the first quarter of 2014.

SL Green Signs 266 KSF with Metro-North Commuter Railroad

Metro-North Commuter Railroad Co., a subsidiary of New York State’s Metropolitan Transit Authority, has signed a 20-year lease covering 265,903 square feet at 420 Lexington Ave., better known as the Graybar Building. The complicated transaction took 20 months to complete, and involves Metro-North renewing for the entire 11th and 12th and parti of the  22nd floors, as well as adding 132,400 square feet of new space by taking the entire 10th floor and a significant portion of the second, third and fifth floors. The expansion required assembling 34 separate spaces as well as the relocation or recapture of 15 occupied spaces. The 1.2 million-square-foot property is located adjacent to Grand Central Terminal. Occupancy will increase to more than 94 percent once the expansion is complete.

SARES-REGIS Fills 800 KSF Distribution Building

Decker Outdoor Corp.—a footwear company that includes brands Ugg Australia, Sanuk and Teva—has signed a 10-year lease for an 800,000-square-foot distribution building in Moreno Valley, Calif., that is being developed by SARES-REGIS Group. The asset is due for completion in the fall of 2014, and is among three LEED-rated logistics facilities totaling 2.2 million square feet under development by SARES-REGIS Group in the Inland Empire. Decker’s lease consideration totals $37 million.

NGKF Lands Three-Building Leasing Contract in Illinois

Equity Office has tapped Newmark Grubb Knight Frank as the exclusive leasing agent for Executive Towers West, a three-building, 693,867-square-foot Class A office complex in Downers Grove, Ill. The property is one of the largest office assets in the East-West submarket, which has the second-lowest Class A vacancy of all submarkets in the Chicago region. Currently, there is a 48,000-square-foot, full-floor space available. Equity Office has an improvement plan in play, including a new tenant lounge and management office, corridor upgrades and lobby renovations.

COPT Leases 150 KSF in Philly, Begins Redevelopment

Corporate Office Properties Trust has executed a long-term lease with a tenant for two spaces at Arborcrest office park, a five-building complex in the Blue Bell submarket of Philadelphia. The transaction totals nearly 150,000 square feet, the first portion of which is comprised of 38,000 square feet in 721 Arbor Way, a 183,400 square foot building that COPT began redeveloping in 2012 and is now 86 percent leased. The remaining 112,000 square feet has been leased in the to-be-redeveloped 731 Arbor Way. COPT has plans to begin the redevelopment during the first quarter of 2014.