In The Pipeline is a column on significant acquisitions of commercial land for sale, and other transactions and trends affecting office, industrial, flex, multifamily, mixed-use, hotel and public works developers. Send us news leads about your new commercial real estate project — and sign up to be added to our distribution list to receive future In the Pipeline columns by e-mail.
‘Mini-City’ Within Manhattan Begins Long Construction Journey
Hudson Yards, the $15 billion “city within a city” slated by Related Cos. for 26 acres of former railroad storage yards in Midtown Manhattan, has formally gotten under way.
Mayor Michael Bloomberg and City Council Speaker Christine Quinn joined Related Chairman Stephen M. Ross and OMERS Investment Committee Chair Bill Aziz at a ceremonial groundbreaking Tuesday for the skyline reshaping project on the largest piece of undeveloped property in Manhattan.
Construction began officially today on the first tower, the 1.7 million-square-foot, 47-story South Tower, at the northeast corner of 10th Avenue and 30th Street. The building designed by Kohn Pedersen Fox Associates will be completed in 2015, when it will become the home of Coach Inc.’s world headquarters. Coach Inc. is purchasing about 740,000 square feet in building.
The South Tower will be followed by the North Tower of 2.4 million square feet at the southwest corner of 10th Avenue and 33rd Street. The two towers will be linked by a major retail complex.
More than 40,000 people will eventually live or work in the project, which expands midtown’s CBD to the west side and constitutes what Related’s Ross described as one of the most ambitious developments ever undertaken in U.S.
Macerich Makes It Official: Intelsat Moving HQ to Tysons Corner
By Tim Trainor
Confirming recent market rumors, Macerich (NYSE: MAC) today announced that Intelsat, a global provider of satellite services, has signed a 15-year lease and will relocate its U.S. headquarters from Washington, D.C. to occupy approximately 188,000 square feet in a new Tysons Corner Center office building Macerich is developing with its partner in the project, the Alaska Permanent Fund Corp.
Intelsat, which selected the Macerich building over numerous other offers, finalized the agreement on November 30. It will initially occupy the 14th through 20th floors, or approximately 37% of the 20-story, 524,432-square-foot Tysons Tower at 7900 Tysons Center Place, which will be the tallest building in Tysons Corner when completed in early 2014. The satellite firm also has an option to occupy up to half of the building for future expansion.
The new office tower will be part of a massive, 1.4 million square foot mixed-use expansion currently underway at Tysons Corner Center. In addition to the 20-story office tower, Macerich is adding a new 17-floor, 300-room Hyatt Regency hotel, a residential tower, and additional retail space to the Tysons Corner Center mall.
PGP Acquires Fee Interest For $1.3B Capitol Crossing Project
Property Group Partners (PGP) has acquired the fee interest for three blocks of the recessed portion of Interstate 395 in downtown Washington, which PGP said will enable work to begin on the 2.2 million-square-foot Capitol Crossing development, part of which will be built on a huge platform over the interstate.
Development of the platform and the first office building in the unique mixed-use project — formerly known as “the air rights development” as reported by CoStar earlier this year — to be built on the largest contiguous undeveloped site remaining in downtown Washington, is now slated to begin next year, according to a PGP statement.
The platform will cover the roadway between 2nd and 3rd Streets NW, spanning from Massachusetts Avenue on the north to E Street on the south, creating seven acres of property when completed.
The project also will reconnect Capitol Hill with the East End district, cut off by the construction of I-395 in the late 1960s.
“As a development firm that has constructed iconic buildings throughout the world, this is by far the most creative project that we have ever tackled,” said PGP President Jeffrey Sussman.
Developer Acquires Land For Retail, Hotel In Huntington Beach
San Jose, CA-based DJM Capital Partners has acquired 11 acres for the retail and hotel portion of the Pacific City mixed-use development from Crescent Heights, a developer that bought the site last year.
Moving forward with a different design for the retail and hotel portions, DJM plans to develop on the project’s original footprint, with almost 6.5 acres encompassing 191,000 square feet of open-air retail, restaurants and entertainment and four acres for an eight-story hotel.
The new owners hope to bring an eclectic mix of retailers and restaurants that are both local and global to the project, said Lindsay Parton, president, DJM Development Partners, Inc., an affiliate of DJM Capital Partners, Inc.
The company is already established in Huntington Beach as the owner of Bella Terra, an 800,000-square-foot retail center set on 44 acres with more than 70 shops and restaurants.
Tanger, Peterson Cos. Break Ground On National Harbor Outlet
Tanger Factory Outlet Centers, Inc. (NYSE:SKT) and Peterson Companies have broken ground on Tanger Outlets National Harbor, a 340,000-square-foot, $100 million outlet center project.
The center is located at National Harbor, the 350-acre master development by Peterson along the Potomac River which includes restaurants, retail, office and residences, and hotels, including the Gaylord National Resort and Convention Center, the largest non-gaming hotel on the eastern seaboard.
Located at the base of the Woodrow Wilson Bridge and directly accessible from the Capital Beltway (I-95, I-495), I-295 and Indian Head Highway (Route 210), the center will draw from a trade area that includes 8 million residents in the surrounding Maryland, Virginia and D.C. communities.
The center is eight miles southeast of the nation’s capital which welcomes 33 million annual domestic and international visitors. The open-air mall will include both covered and uncovered landscaped courtyards and park-like settings throughout the complex.