Welcome to the 4th edition of CompStak Courier, your one-stop shop for interesting CRE news for the week.
NEW YORK CITY: Hollywood Talent Agency Signs at 140 Broadway
Paradigm Talent Agency signed a 10-year lease for its 50,604 SF space at 140 Broadway. Relocating from Midtown South to FiDi, the talent agency, whose clients include Julie Bowen, Jada Pinkett Smith, and The Lumineers, is paying $60 PSF and negotiated 13 months of free rent. Compared to other deals signed over the last year, the $60 PSF starting rent is right on par with the building average.
DC METRO: MCF Capital Buys 80K SF Greenbelt Office Building
MCF Capital recently purchased the 83,020 SF Triangle Center at 6401 Golden Triangle for a very competitive price. CompStak data revealed that Aggregate Industries has leased closed to 25% of the building at $22.06 PSF. This is slightly higher than the average starting rent of its competitive properties, which stands at $21.69 PSF. On the other hand, it is lower than the average starting rent of the College Park & Greenbelt submarket which stands at $23.63 PSF.
SAN FRANCISCO-BAY AREA: 114 Sansome On Market for Reportedly $155M
The historic creative office building at 114 Sansome is back on the market. Last purchased in 2013 by Credit Suisse for $105M, the Adam Grant Building is looking to sell at $155M or $811 PSF. Hotwire, a brand of Expedia, has leased over 40% of the building, where starting rents average around $50 PSF. This is well below the average starting rent for comparable properties, which stands at $61.37 PSF, as well as the average starting rent for the North Financial District submarket, which stands at $62.89. Potential buyers will also be intrigued as, according to CompStak, most of the building’s leases will be rolling in the next 5 years, allowing for the new owner to increase rents to market rates.
CHICAGO: Sabal Financial Sells Evanston Office Building for $18M
Fulcrum Asset Advisors purchased 3, 6, and 9 Parkway Boulevard North for a reported $80M in a JV partnership with White Plains. The deal marks yet another large investment into the suburban Chicago office market following $80M and $24M deals in Oakbrook this year. 3, 6, and 9 Parkway Boulevard North are underperforming with an average starting rent of $21.19 compared to an average $22.02 for the North Suburban market, according to CompStak. With the continued recovery and vacancy rates at a pre-recession low, the building is bound to catch up with the rest of the market.
BOSTON: The Latest in Cool Boston Office Space
Continuum Managed Services and and McGraw-Hill have some of the coolest office spaces in Boston according to Bisnow. Their employees get local craft brews, game spots, a meditation room, a shower, lockers, and an overall elegant design. According to CompStak, Continuum Managed Services is paying $43.34 PSF for the 25,455 SF space while McGraw-Hill is paying $39.00 PSF for the 12,204 SF space. It looks like the employees from Continuum Managed Services will get to enjoy this beautiful space for the next 7 years before the lease expires on July 1, 2023. On the other hand, the space leased by McGraw-Hill Education is due to expire in 3 years’ time on October 2019.