DivcoWest lands Japanese watch company at 540 Madison Avenue


Japanese watch company Grand Seiko is moving up Madison Avenue.

The company is headed for a new space across 6,200 square feet at DivcoWest’s 540 Madison Avenue on the southwest corner of East 55th Street. It expects to open in early 2023 in the two-level space, which has 3,200 square feet on the ground floor and 3,000 on the lower level.

Newmark’s Benjamin Birnbaum and Alexandra Tennenbaum represented the watchmaker, and Ariel Schuster, also of Newmark, represented the building owner. The asking rent for the 10-year deal was $475 per foot.

The space was previously occupied by a Wells Fargo branch that moved across the avenue.

Grand Seiko is known for its nature-inspired watches that are made in two areas of Japan using mechanical, spring drive and quartz movements. The company has a flagship in Soho and around 80 outposts in the United States.

Its new location is in the base of the 291,000-square-foot, Class A office building that was completely redeveloped by Harry Macklowe in 1999. The property sold to Boston Properties in 2010 along with 510 Madison and a bevy of others as part of Macklowe’s painful, recession-triggered restructuring.

DivcoWest bought the property in 2019 for $310 million and made capital improvements during the pandemic. It added a two-floor amenity center along with food and beverage service and an outdoor terrace. It has also updated the lobby and elevators in the 39-story property. READ MORE.

Sixth and Guadalupe Mixed-Use Tower Tops Out as the Tallest Tower in Austin


Standing taller than any current building in Austin, Sixth and Guadalupe has topped out at its final height of 865 feet. This much-anticipated milestone has been two and a half years of a steady vertical climb and was met successfully, even with a backdrop of skilled labor shortages, a pandemic, and market inflation.

Sixth and Guadalupe is owned and managed by Kairoi Residential, Lincoln Property Company, and DivcoWest. Construction is led by JE Dunn Construction and designed by Gensler.

“To accomplish the top out of Sixth is big for this team and for me personally,” said Steve Welton, Vice President, and Project Executive for JE Dunn, and who has been a leader on the project since it was awarded to JE Dunn in late 2017. “This project challenged our team and has truly taught us the meaning of accountability, teamwork, client and design team alignment, and honestly, why we choose to work in construction. I’m so proud of our people.”

Sixth and Guadalupe sets the bar for defining the function, beauty, and community integration of mixed use buildings. It is a 2.2 million square foot, 66-story tower that stacks 14 levels of parking, 19 levels of Class A office space, and 32 levels of high-end residential on an entire city block in one of downtown Austin’s most walkable and popular areas.

It will also include 10,000 square feet of street-level retail and has the largest elevated outdoor amenity space in Austin.

“We have assembled a remarkable team to build what we believe will be the finest residential experience in all of Austin. We are proud of the entire team involved in bringing this project to fruition and we are looking forward to celebrating this successful milestone with our team and partners,” said Tony Curp, Executive Vice President of Development at Kairoi.

Over the last year, Austinites, visitors, and travelers on I-35 have witnessed the visual impact of Sixth and Guadalupe on the Austin skyline as it grew to its final height. READ MORE.

DivcoWest Celebrates Topping Off of the 5th Life Science Building at 441 Morgan Avenue in Cambridge Crossing

DivcoWest, the national investment and development team behind the destination neighborhood and innovation hub, Cambridge Crossing (CX), alongside construction manager John Moriarty & Associates (JMA), celebrated another major milestone at CX, the topping off of 441 Morgan Avenue, a state-of-the-art 375,000 SF, 10-story life science building.

During the celebration, construction workers, architects, engineers, and employees gathered to sign the steel beam before it was hoisted atop the future life science building marking the completion of the steel construction phase of the project. This memorable event commemorated the collective hard work and collaboration of the teams and trade members.

“We want to thank the men and women of Local 7, all our other union trade partners, and the dedicated JMA staff for helping us safely reach this critical milestone on the job. We also want to thank DivcoWest for the continued opportunity to be part of their team. We truly appreciate the partnership our organizations are able to share,” said Chris Brown, CEO of John Moriarty & Associates.

Designed by Ennead and Jacobs Consulting, the building is situated at a gateway to the Cambridge Crossing neighborhood and will deliver views of the Charles River and beyond. With wellness, connectivity, and tenant experience at the forefront, when complete, 441 Morgan will offer five outdoor terraces, direct access to a 5-acre park just outside its front door, and integrated building technologies including smart technology View glass. The future-forward building is targeting LEED Gold and Wired Score Platinum certifications and includes three underground levels of parking and a bike room.

“We are thrilled to officially top off 441 Morgan Avenue, CX’s 5th lab-ready building thoughtfully-designed to meet the demands of leading life science companies and a place where innovation will thrive.” said Mark Roopenian, Managing Director of DivcoWest. “We are incredibly grateful for the hard work of the men and women of the labor union teams, and our partners Jacobs, JMA and Ennead, who are making our vision a reality and have helped us to reach this significant milestone. The completion of another life science building at CX will allow us to further our commitment to provide state-of-the-art workplaces that accelerate scientific breakthroughs and change how we all live.”

The building is situated in a thriving new neighborhood with superior connectivity including immediate access to two MBTA lines, the Lechmere green line and the Community College orange line. Current tenants within the CX innovation hub include Bristol Myers Squibb, Philips, Sanofi, and Cerevel Therapeutics. In addition to access, CX offers a variety of amenities including cafes, a brewery, restaurants, and numerous outdoor spaces programmed throughout the year. Current retailers include Lamplighter Brewing Co., Tatte Café & Bakery, Cafe Beatrice, Geppetto, The Lexington, and REI.

At completion, this new transformational neighborhood will be comprised of 4.5 million square feet of commercial, residential, and retail plus 11-acres of open and green space. Currently, 1.9 sf has been completed. Learn more about 441 Morgan Avenue here!

LCOR and DivcoWest Commence Move-Ins at Park 151, CX’s Inaugural Multifamily Building

The first residential phase of the overall 4.5 million-square-foot Cambridge Crossing development, Park 151 delivers 468 mixed-income residences, 19,000 square feet of retail space with plans for additional green space to East Cambridge.

Today, LCOR, a fully integrated real estate investment, development, and management firm and DivcoWest, a national and vertically integrated, real estate investment firm announced the commencement of move-ins at Park 151, a highly amenitized, 20-story, 468-unit, mixed-income residential property located at 151 North First Street in East Cambridge, MA, the inaugural residential phase of the 4.5 million-square-foot Cambridge Crossing neighborhood.

“We’re thrilled to be launching move-ins at Park 151 and to begin welcoming residents to their new home at Cambridge Crossing,” said David Sigman, Executive Vice President and Principal at LCOR. “As one of the most desirable submarkets in the country that continues to poise itself for exponential growth, we’re grateful to be able to provide a much-needed housing offering to the East Cambridge community to keep up with its demand and thank our partners for helping to bring Park 151’s vision to fruition.”

“Park 151 embodies the innovative spirit of Cambridge Crossing, and we’re proud to have partnered with LCOR to offer residents a distinctive place to call home,” said DivcoWest Senior Development Executive John Weigel. “This state-of-the-art residential building serves as a prime location for today’s established professionals, offering them unique amenities in a superior location.”

Park 151 features 468 residences ranging in size from studios to three-bedroom apartments, inclusive of 392 market-rate residences, 22 penthouse homes and 54 affordable units with an additional 19,000 square feet of ground-floor retail space. The units include in-unit washers and dryers, panelized appliances with LED downlighting. In addition to the premium features of each individual unit, the building delivers lifestyle-oriented amenities and hotel-like services throughout.

On the third floor, residents can take their work and life outside the home on the pool deck which features an outdoor kitchen, cabanas, and movie screening lounge. Adjacent to the pool deck, residents host an event and entertain in the private kitchen and dining room, sports simulator, indoor lounge, or host meetings in the co-working and micro-office spaces. With wellness in mind, the building also offers a fitness room with indoor and outdoor yoga spaces, a sunset terrace, and plenty of space to store bikes after a ride along the Charles River.

Additionally, Park 151 benefits from its proximity to two MBTA lines with the new Lechmere Green line station one minute away and the Community College Orange line just a quick 7-minute walk. Right outside the front door, cafes, restaurants, and a brewery connect residents to the community through local flavors and restauranteurs. 11 acres of activated open space sits adjacent to the residence, providing unmatched connectivity and the ability to bring the indoors out. The open spaces at CX feature a central 5-acre common with a waterway where concerts and fitness classes are held, outdoor seating in the Picnic Grove and Maria Baldwin Open Space, and a recently opened dog park and half soccer field, with more to come.

Park 151’s neighborhood, Cambridge Crossing, is located at the intersection of Cambridge, Boston, and Somerville, and is part of Kendall Square, one of the most innovative square miles in the country. Featuring one of the most sought-after life science, research, and technology markets (inclusive of Sanofi, Bristol Myers Squibb, Google, and Amazon) and the nation’s leading academic institutions such as Harvard and MIT, Cambridge boasts intellectual work and education avenues, while simultaneously providing top-tier bars, restaurants, arts and cultural offerings.

Park 151 is a joint venture between LCOR and DivcoWest and is part of the 43-acre, 4.5 million square-foot Cambridge Crossing master development plan by DivcoWest. The partnership is dedicated to bringing top quality residences to the dynamic new neighborhood. Cambridge Crossing includes commercial, residential, retail and an abundance of open green spaces. Park 151 is a collaborative product of LCOR’s residential and management expertise, and DivcoWest’s development experience within the local Boston/Cambridge market.

For more information on Park 151 and to schedule a tour of the property, please visit park151.com.

DivcoWest partakes in MSD Partners-led refinancing of One Lincoln tower


US real estate investment firm DivcoWest has participated in an MSD Partners-led $1bn (€1.02) refinancing of an office tower owned by Fortis Property.

DivcoWest said it has provided a floating rate, senior mezzanine loan to Fortis Property as part of the refinancing of the 36-storey One Lincoln tower in Boston.

The asset, formerly known as State Street Financial Center, was built in 2003.

The proceeds from the refinancing will be used to retire existing debt as well as to make more than $200m in major capital improvements to the building and tenant suites.

The building has private equity Harbourvest Partners as its new anchor tenant.

DivcoWest, formed in 1993, has acquired, owned and managed more than 59m Sqft of commercial space but it also invests selectively in floating rate debt opportunities in office, life science, R&D, retail, industrial and multifamily asset classes in the US. READ MORE.

Burlingame Bayfront office developments advance


A proposed biotech campus and a research and development campus nearby on the Burlingame Bayfront are moving through the development process, with the Planning Commissioner satisfied with most project aspects.

The 12-acre biotech site from 1200 to 1340 Bayshore Highway on either side of Easton Creek calls for three 11-story buildings at nearly 1.5 million square feet and two 10-story parking structures to provide 3,500 parking spaces. The buildings would all be more than 200 feet, nearly double the height of the nearby Hyatt hotel and adjacent One Bay Plaza building. The project, known as Peninsula Crossing, would also have new bike and pedestrian crossings around Easton Creek and a berm on the eastern side to withstand climate change flooding. The berm would be up to 17 feet above current sea level and could connect to other protection infrastructure in the area. Peninsula Crossing would connect a missing quarter-mile portion of the bay trail and restore a tidal wetlands area along the creek. The southern building includes plans for a restaurant on the ground floor, overlooking a park area with a theater near the intersection of Airport Boulevard and Bayshore Highway.

At an Aug. 22 Planning Commission meeting, commissioners found no outstanding environmental impact review issues that would derail the project. Some on the commission asked the applicant, DivcoWest, to look at soil liquefaction, increasing pile foundation, if wind patterns might affect a nearby baseball field, and if more parking spots could be added for bay trail visitors. Some public speakers worried about the large building heights and how the city would address the jobs-housing imbalance from the project.

The area is a growing life science hub originally designed for large hotels, which have suffered from a lack of visitors during the pandemic. The city has instead focused on bringing in life science projects to the area, and it has already received three applications for life science buildings nearby. Cities like Foster City, Redwood City and others have looked to get involved in hosting life science developments near the Bayfront, with South San Francisco a local leader in life science development. The project would replace a Holiday Inn, deli-style restaurant Max’s of Burlingame, nightclub Caribbean Gardens, Se Come Asi Taqueria, office buildings and surface-level parking lots… READ MORE.

Work begins on seven-story office project south of downtown Austin


A developer is set to start work on a seven-story office building that will rise on South Lamar Boulevard just south of Lady Bird Lake.

Demolition has begun on a one-story former Schlotzsky’s restaurant on the property, and construction of the office building, called Zilker Point, will follow. The 1.26-acre site, at 218 S. Lamar Blvd., is just south of downtown Austin and next to Zach Theatre.

The developer, Austin-based Generational Commercial Properties, led by founder Joe Llamas, has obtained a $124 million construction loan from New York-based MSD Capital. MSD Capital is a private investment firm that manages the assets of Dell Technologies founder Michael Dell and his family.

When it is completed in two years, Zilker Point will have 192,00 square feet of office space, 15,000 square feet of retail space and amenities on the ground floor, and 635 parking spaces. Designed by the architecture firm of Runa Workshop, the office project will have a tenant fitness center, a rooftop terrace and a community art gallery.

Generational Commercial Properties is partnering on the project with San Francisco-based DivcoWest. Generational Commercial Properties also developed 801 Barton Springs, a midrise building on Barton Springs Road across from the Palmer Events Center.

Work is starting on Zilker Point as the Austin-area office market continues rebounding from the COVID-induced slump and benefiting from growth in its technology sector by companies including Google, Indeed, Amazon, Apple, Facebook, Tesla and Oracle.

In the part of town where Zilker Point will rise, “demand has been strong for Class A (top-tier) office space in neighborhoods south of the river on a consistent basis,” said Matt Frizzell, executive director in Austin at Cushman and Wakefield, a global commercial real estate services firm… READ MORE.

DivcoWest Lands $103M for Austin Office Asset


TIAA provided the loan for the LEED Gold-certified building.

After a year of ownership, DivcoWest has secured a $103 million financing package for Bouldin Creek, a LEED Gold-certified office building totaling 167,130 square feet in Austin. TIAA provided the variable interest rate loan, Travis County records show.

In the first half of 2022, 79 office properties totaling nearly 4.4 million square feet across Greater Austin received more than $4.4 billion in the form of acquisition loans or refinancing, CommercialEdge data shows.

Earlier this year, DivcoWest also landed $145 million to refinance a 24-story office high-rise in Glendale, Calif. CBRE arranged the five-year loan originated by Deutsche Bank, which retired a $120 million loan provided by AXA Equitable Life Insurance Co.

Bouldin Creek came online in 2021 at 2043 S. Lamar Blvd. The Class A, five-story property features floorplates that average 50,000 square feet, 2,500 square feet of retail space and a parking ratio of 3.9 spaces per 1,000 square feet, CommercialEdge data shows.

Designed by Michael Hsu Office of Architecture and Studio8 Architects, Bouldin Creek includes outdoor terraces, a rooftop deck, a fitness center with lockers and shower facilities, bike storage and electric vehicle charging stations. The multi-tenant property also encompasses more than 2 acres of shaded green space with open-air workspaces, walking trails and a creek.

The boutique office building is within 2 miles of Interstate 35 and less than 3 miles from downtown Austin. The Republic, a 48-story office tower developed by DivcoWest, Lincoln Property Co. and Phoenix Property Co., and 6th & Guadalupe, a 66-story mixed-use tower developed by DivcoWest, Lincoln Property Co. and Kairoi Residential, are both within a 3-mile radius of the property…READ MORE.

Sand Hill Road Reckons with Its Future


Landlords of the iconic Silicon Valley office strip rethink strategies in remote-work era.

There are only a handful of streets across the U.S. that are synonymous with entire industries. Wall Street and finance. Madison Avenue and advertising. K Street and politics. In Menlo Park, California, it’s Sand Hill Road and venture capital. When an upstart VC firm named Kleiner Perkins established its headquarters on the 5.6-mile stretch of Silicon Valley roadway in 1972, few could have predicted that the area would eventually become the center of the tech-funding universe.

Almost every prominent Silicon Valley company — Google, Facebook and Apple among them — has received early-stage backing from venture capitalists on Sand Hill Road. Wikipedia lists almost 50 VC firms along a one-mile strip connecting Stanford University with Interstate 280, including industry leaders such as Kleiner Perkins, Sequoia Capital and Andreessen Horowitz, also known as a16z.

In a way, the area has beaten the odds to become one of the world’s most expensive office submarkets. Its building base is about 1.2 million square feet of mainly low-rise, woody walk-ups, most of them built in the 1970s and ’80s and situated between trees, rosemary plants and parking lots… READ MORE.

Comstock and DivcoWest Announce New Leases at Premiere Clarendon Office Property


RESTON, Va., Aug. 01, 2022 (GLOBE NEWSWIRE) — Comstock Holding Companies, Inc. (Nasdaq: CHCI) (“Comstock”) and DivcoWest announced today two new leases at the Hartford Building, located in the Clarendon neighborhood of Arlington, Virginia. Greystar, a leader in the investment, development, and management of high-quality rental housing properties, will occupy 10,166 sq. ft., and DFS Construction, an Arlington-based construction company, has leased 11,869 sq ft.

“We are thrilled to join the Hartford Building and the larger Clarendon and Courthouse community,” said John Clarkson, Managing Director for Greystar. “As a local developer, investor, and manager, we greatly value the area’s access to transportation, amenities, and great schools and the building’s high quality professional experience. We look forward to maintaining our long-term presence in Northern Virginia as a tenant in the Hartford.”

Comstock acquired the Hartford building in 2019 in a joint venture with Comstock Partners, LC, an affiliated private company, and DivcoWest, a vertically integrated investment firm headquartered in San Francisco, California. The 9-story, Class-A building is located at 3101 Wilson Blvd., adjacent to the Clarendon Station on Metro’s Orange Line in Arlington, Virginia. The 211,450 square foot office building with street-level retail is currently 88%+ leased to multiple high-quality tenants.

“We are extremely excited for our expansion in Clarendon to the Hartford building,” said Robert DiGiovanni, Principal, DFS Construction. “Our longstanding relationship with Comstock Companies and DivcoWest made this trophy building an easy choice for our new offices.”

The Hartford Building is situated in the heart of Clarendon’s transit-oriented and mixed-use, office and retail corridor that features Whole Foods, Trader Joe’s, Apple, Barnes & Noble, and Sephora, along with a variety of local restaurants such as Green Pig Bistro, Ambar, Bakeshop, and CIRCA at Clarendon. East Coast Coffee & Wine recently opened in the Hartford Building, further increasing dining options in the vibrant Clarendon submarket and providing an additional in-building amenity.

Speaking on behalf of the joint venture, Timothy J. Steffan, Chief Operating Officer for Comstock, said, “We are delighted to welcome Greystar and DFS Construction to the Hartford Building. These leases represent significant growth in our office leasing at the property, which continues to attract quality tenants.”

There is an ongoing renovation and enhancement program for the Hartford Building that includes the build out of a shared conference center along with other common area enhancements slated for completion in 2023. The Hartford Building and its commercial parking garage are managed by Comstock’s Commercial Management and ParkX Management teams… READ MORE.