COVER STORY, JANUARY 2008

OFFICE/INDUSTRIAL ACTIVITY

Office

• Portland, Oregon

KBS Real Estate Investment Trust acquired ADP Plaza in downtown Portland for $33.1 million. The acquisition comprises two four-story buildings totaling 180,772 square feet and an 117,614-square-foot parking garage situated on a total of 2.2 acres.

• San Francisco

According to contractor Turner Construction Company, 555 Mission Street, a 33-story, 670,000-square-foot office tower currently being developed in downtown San Francisco, will be the first Class A office building erected in the city in the past 4 years. Developer Tishman Speyer, which incorporated several green techniques and standards into the project months after its October 2006 groundbreaking, aims to complete the development in September 2008.

More than 160,000 square feet of office space at 303 Second Street in San Francisco has been leased up. Jones Lang LaSalle brokers Christopher T. Roeder and Ted Davies handled the nine lease transactions at the largest office complex in the city’s dynamic SOMA submarket.

• Los Angeles

Charles S. Cohen, owner of Pacific Design Center, is developing the 400,000-square-foot RedBuilding, the third and final component of the unique, 14-acre PDC campus in West Hollywood. Cesar Pelli of Pelli Clarke Pelli created the striking design of the mixed-use campus.  

• Las Vegas

Centra Properties has sold its eight-building, 386,264-square-foot Centra Point office park, located in Las Vegas’ southwest submarket, to Seattle-based pension fund advisor Washington Capital Management. According to Colliers International, which represented Centra in the transaction, WCM has closed on six of the eight buildings for approximately $97 million, with the remaining two assets expected to close before 2008.

• Phoenix

Grunberg Ventura LLC purchased the Scottsdale Executive Office Park, a two-building office development, from Los Angeles- based Lowe Enterprises for $54 million. The two three-story buildings total 251,588 square feet.

In October, Biltmore Holdings and LGE Design Build broke ground on La Curvata, a two-story, 102,000-square-foot multi-tenant office development in North Scottsdale. To be offered for sale or lease, the property will have immediate access to the Loop 101 freeway when completed in fall 2008.

In early November, Transwestern arranged a new 10-year, $25 million lease for the IRS for nearly 108,000 square feet at 4041 N. Central Plaza in downtown Phoenix.

Industrial

• Los Angeles

In one of the largest industrial deals ever in the country, Birtcher Development & Investments, in partnership with Cornerstone Real Estate Advisers LLC, signed Ohio-based The Kroger Co. to a 30-year, $207 million lease of the soon-to-be-built Birtcher Distribution Center at Paramount in Los Angeles County.

In one of the largest industrial deals ever in the country, Birtcher Development & Investments, in partnership with Cornerstone Real Estate Advisers LLC, has signed Ohio-based The Kroger Co. to a 30-year, $207 million lease of the Birtcher Distribution Center at Paramount. Scheduled to begin construction in early 2008, the infill development will encompass a 551,897-square-foot warehouse and distribution center in Los Angeles County.

• Orange County, California

In Fullerton, Lowe Enterprises, in a joint venture with GE Real Estate, has begun construction on a $46 million infill industrial park, the 15-acre Kimberly Business Center. The 285,399-square-foot center, designed by Ware Malcomb, will consist of six for-sale buildings and 13 smaller industrial condominiums.

Panattoni Development recently sold the newly constructed Goodyear Business Park in the Irvine Spectrum area to Don Wilson Builders for $33 million. The industrial park comprises 39 units in six buildings totaling 144,185 square feet.

Morgan Holdings LLC recently sold a state-of-the-art, 103,248-square-foot industrial building in Huntington Beach, California to AMB Property Corporation. The two-tenant industrial property was built in 2006.

• Inland Empire

Stirling Capital Investments, a joint venture between Stirling Enterprises and Denver-based DCT Industrial Trust Inc., recently began construction on a 296,000-square-foot Class A distribution building at Southern California Logistics Centre (SCLC) in Victorville, California. Completion of the development is scheduled for second quarter 2008.

In Perris, First Industrial Realty Trust Inc. broke ground on the Rider Distribution Center, a 355,067-square-foot state-of-the-art crossdock warehouse and distribution facility. Completion of the center is slated for second quarter 2008.

©2008 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.