Welcome to the 7th edition of CompStak Courier, your one-stop shop for interesting CRE news for the week.
NEW YORK CITY: Hubb NYC Relocates to 579 Fifth Avenue
Manhattan real estate company, Hubb NYC, has relocated to 579 Fifth Avenue from 130 East 59th Street. The 12K SF lease is for 10 years. According to CompStak, Hubb is set to pay $54 PSF in starting rent, below the $60 PSF asking rent. In addition, the real estate firm received $70 PSF in tenant improvements as part of the deal.
DC METRO: Japanese buyer pays $140.5M for CNN-anchored NoMa building
An affiliate of Unizo Real Estate acquired 820 First St. NE for roughly $472 per square foot, marking the third in a recent string of DC acquisitions totalling $343M. Unizo acquired the 279,608 SF office building from a joint venture of Harbor Group International, Capstone Equities and Image Capital for $140.5M. According to CompStak, the starting rent, including that of anchor tenant CNN, averages $42.50, which is lower than the average starting rents for its competitive set and the NoMa submarket that are $47.94 and $51.05 respectively.
LOS ANGELES: CBRE plans to tint 11K SF of glass at downtown LA office building
CBRE has employed a local window tinting company to reduce the glare from the windows at 400 South Hope Street. The Mellon Bank Center is a 700 SQFT Class A space with sloped skylights and wonderful views of LA, creates a bad glare and overheats the building. According to CompStak, the starting rent for the building averages $1.91, which is considerably lower than its competitive set ($3.38) and the downtown LA submarket ($4). With the window-tinting hopefully CBRE will be able to increase rents for this otherwise high quality Class A asset.
SAN FRANCISCO-BAY AREA: Twitter Looks to Sublease Part of Mid-Market HQ
Twitter is adding to its sublease portfolio with 78K SF available for sublease at 1355 Market Street and now over 100K SF available for sublease at One 10th Street. This is enough space for over 1400 employees and is the largest sublease available in the SF market. Twitter is currently paying an average starting rent of nearly $48 PSF for these spaces, according to CompStak.
BOSTON: John Hancock Purchases 535-545 Boylston Street for $100.5M
John Hancock purchased 535-545 Boylston Street for $100.5M. The two 13 story buildings total 185,000 SQFT and add to John Hancock’s Boston portfolio, which also includes 197 Clarendon, 200 Berkeley, and 380 Stuart Street. According to CompStak, the average starting rent for the buildings is $43.31, which is much lower than the $63.61 for the Back Bay submarket over all, allowing for increased NOI in the future for the investor.