June – Briefs/Leasing & Management
- May 29, 2013
Hines Renews Law Firm for 595 KSF in Manhattan
International law firm Simpson Thacher & Bartlett L.L.P. has renewed a lease with Hines for 595,000 square feet at 425 Lexington Ave. in Midtown Manhattan. The contract, which was set to expire in 2033, encompasses 26 floors of the 31-story tower. CBRE Group Inc. represented Simpson Thacher & Bartlett L.L.P. in the lease negotiations, while Hines represented the owner, its own Hines U.S. Core Office Fund.
The lease renewal certainly makes the asset a more attractive buy, as Eastdil Secured and CBRE Group Inc. are currently marketing the property for sale. The 750,000-square-foot tower is one of the newest buildings in the Grand Central market. It occupies the entire easterly block front between 43rd and 44th streets and is situated directly across from Grand Central Terminal and the Chrysler Building.
Shorenstein Hires Transwestern to Lease 1.2 MSF Exxon Mobil Tower
San Francisco-based Shorenstein Properties L.L.C. has chosen Transwestern to serve as the exclusive leasing agent for 800 Bell—the 1.2 million-square-foot office tower in Houston’s Central Business District that the company acquired back in January. The 45-story 800 Bell St. building, known as the ExxonMobil Tower, was built in 1962 as the headquarters of Humble Oil & Refining Co., a predecessor to ExxonMobil. At that time, it was the tallest building west of the Mississippi River at 606 feet. The property includes a seven-story parking garage covering two city blocks on the corner of Travis and Bell streets. Current tenant ExxonMobil will vacate the building in 2015, when the development of its new campus will be completed. The vacancy gives Shorenstein the opportunity to deliver significant improvements to the property through an extensive redevelopment.
Matrix Realty Signs 327 KSF in Connecticut
Boehringer Ingelheim Pharmaceuticals Inc. has signed a 10-year, 327,095-square-foot lease with The Matrix Realty Group at the Matrix Corporate Center in Danbury, Conn. The lease transaction represents an aggregate value in excess of $90 million, according to Matrix Realty Group. Cushman & Wakefield Inc. represented the German-headquartered pharmaceutical company in the transaction. Boehringer Ingelheim Pharmaceuticals employs more than 40,000 associates in 50 countries, with annual sales in excess of $17 billion.
L’Oréal, SAP Take 500 KSF at Hudson Yards
The 1.7 million-square-foot South Tower high-rise at Related Cos. and Oxford Properties Group’s massive Hudson Yards project in Manhattan has reached commitments for 80 percent occupancy, thanks to two new leases. Cosmetics company L’Oréal USA and software firm SAP have signed for a combined 517,000 square feet in the first tower that will rise in the development. The new lease agreements come roughly 18 months after news that Coach had committed to 740,000 square feet for its global corporate headquarters. L’Oréal has inked a lease for 402,000 square feet at the Kohn Pedersen Fox Associates-designed building, relocating its U.S. corporate headquarters from 526 W. 34th St. to the LEED Gold-certified skyscraper. SAP, which leased 115,000 square feet, will occupy four floors in the building.
Millennium Signs 125 KSF Lease to Jumpstart $630M Boston Project
Millennium Partners has just landed a commitment that paves the way for the commencement of the Millennium Tower/Burnham Building project, the company’s $630 million redevelopment of the former Filene’s Department Store site in downtown Boston. Arnold Worldwide and Havas Media, subsidiaries of Havas Advertising, have signed on for 125,000 square feet of first-class office space in the historic 200,000-square-foot Burnham building. The century-old Burnham Building holds the distinction of being the sole property in Boston that was designed by famed architect Daniel Burnham. Upon completion, the office tower will also feature approximately 135,000 square feet of retail space. The approximately 1 million-square-foot Millennium Tower/Burnham Building will also offer 95,000 square feet of retail space beneath 450 luxury residences in the Millennium Tower.
Prologis Inks 715 KSF with Subaru
Prologis Inc. has signed a build-to-suit agreement with Subaru of America for a 715,000-square-foot distribution center in the Indianapolis area. The state-of-the-art cross-dock facility will be built at Prologis Park Lebanon, near major freeways and the Indianapolis International Airport. The site will serve Subaru as its regional parts distribution center. Prologis Park Lebanon is a 56-acre parcel that Prologis bought in 2003. This is the company’s fourth build-to-suit deal in 2013, with Prologis signing to develop 770,000 square feet for SpeedFC in Pataskala, Ohio; 609,000 square feet for BMW of North America in California and Dallas; and nearly 1 million square feet for Amazon.com in Tracy, Calif.
Dentons Extends Lease in Willis Tower
Dentons, the global law firm formerly known as SNR Denton, has extended its lease in Chicago’s Willis Tower for 15 years. The firm will relocate in the building and take as much as 144,000 square feet of new space. Willis Tower was represented by U.S. Equities Asset Management, which has managed leasing at the iconic property since 2007. Dentons was represented by CBRE Group Inc. Willis Tower is owned by 233 S. Wacker Drive L.L.C. and is home to more than 100 companies, including the global headquarters of United Airlines.
GlaxoSmithKline Sets Up Shop in Philly’s Navy Yard
GlaxoSmithKline has settled into its new digs just 18 months after Liberty Property Trust and Synterra Partners broke ground on the pharmaceutical giant’s new 208,000-square-foot office building in Philadelphia’s Navy Yard Corporate Center. The $150 million project serves as an additional tenant magnet for the Navy Yard, as well as an example of a new work environment. GlaxoSmothKline will occupy the space under a 15.5-year lease. The building is also the first double LEED Platinum-certified property in Philadelphia, with core & shell and commercial interior designations.