Welcome to the 5th edition of CompStak Courier, your one-stop shop for interesting CRE news for the week.
NEW YORK CITY: Law Firm moves to 711 Third Avenue
Goldberg Segalla is leaving their 12K SF 600 Lexington Avenue space for a 23K SF space in 711 Third Avenue. The law firm is paying $63 PSF as part of the 11-year lease. According to CompStak, the starting rent is well below average for both its competitive set and the Grand Central submarket. The competitive set, which includes 757 and 733 Third Avenue, has an average starting rent of $67.78 and the Grand Central submarket has an average starting rent of $71.29.
DC METRO: Meridian Group Acquires 1735 N. Lynn Street for $106.5M
The Meridian Group has acquired International Place, a 200,000+ square-foot office building at 1735 N. Lynn St for $106.5M. According to CompStak, the current average starting rent of the building stands at $41.36 PSF. This is slightly lower than the average starting rent of $42.57 PSF for the Rosslyn Ballston submarket. On the other hand, it is well above the average starting rent of $36.46 PSF for the building’s competitive set. A notable tenant includes the United States Postal Services, which is leasing close to 50% of the space in the building at $35.50 PSF.
SAN FRANCISCO-BAY AREA: Sonnenblick-Eichner Arranges $12.4M Financing for Emeryville College Space
Sonnenblick-Eichner arranged the financing of a $12.4M loan for 6601 Shellmound Street in Emeryville. An unnamed investment bank took on the less than 4.5% interest rate loan. The 63K SF space has only one tenant, Ex'pression College for Digital Arts, which is paying $1.90 PSF in rent. This may just be a sign of what is to come from the CMBS market as the cost capital for borrowers continues to lower.
CHICAGO: Restaurateur Buys 321 N Clark Street for $340M
Larry Levy’s Diversified Real Estate Capital purchased 321 N Clark Street from Hines for $340M. The building is currently leased below market rents with an average starting rent of $19.64, according to CompStak. With a fair amount of lease rollover in the next few years, Levy should be able to lease up to market rates, which stand at $31.66 for the River North submarket and $23.66 for the building’s competitive set.
BOSTON: Boston Consulting Group is moving to Seaport
Boston Consulting Group will be combining and relocating two Boston offices to Pier 4 in Seaport. The two current Boston offices are located at One Beacon and Exchange Place. According to CompStak, BCG is paying $53.00 PSF for its 12,559 SF space at One Beacon and $42.00 for its 40,956 SF at Exchange Place. While the space at Pier 4 is under development, employees of BCG will enjoy on-site retail space, an expansive rooftop garden, a fitness center, bicycle storage, and three levels of parking.