||||| Not a member yet? Register Now! | Forgot Your Password? » Banking & Finance » Business Services » Construction » Education » Energy » Environment » Government » Health care » Insurance » Investments » Legal » Manufacturing » Real Estate » Retail » Small Business » Technology » Tourism » Transportation » Weekends Tuesday, September 02, 2008 12:52:33 PM For-sale office space in short supply Los Angeles-based Fort Properties borrowed $11.2 million to purchase the Chase call center at Republic Road and Campbell Avenue. Chase has a lease through 2027.Brokers say buyer-users are targeting what little is available in south Springfield By Matt Wagner Springfield Business Journal Staff 9/1/2008 The demand for professional office space on Springfield’s south side has remained steady in the face of a faltering residential real estate market, according to local commercial Realtors. Several sizeable office buildings already have changed hands in 2008, and signs suggest there could be more deals hammered out before year’s end. Most of the buildings sold this year were home to existing office tenants that are now leasing from new landlords. In July, for example, a Canada-based company sold the Chase call center at 303 E. Republic Road to a California outfit. Los Angeles-based Fort Properties Inc. bought the 268,413-square-foot, three-story, Class A building for an undisclosed price from Toronto-based Brookfield Asset Management Inc.’s Brookfield Real Estate Opportunity Group, but JPMorgan Chase NA has a lease through August 2027. Fort Properties borrowed $11.2 million toward the purchase, according to Greene County property records. And in February, a group of six local investors doing business as White Dog Properties LLC picked up the 36,000-square-foot Eleven Eleven Building at 1111 S. Glenstone Ave. from Eleven Eleven Development Co. for an undisclosed amount. White Dog borrowed about $2.85 million from Metropolitan National Bank toward the purchase of the three-story building, according to a Greene County deed of trust. “It was a good value,” said Tom Goss, one of White Dog’s investors. “We got the building appraised and paid pretty close to the appraised value.” Goss said leases carried over for all of the building’s tenants – a group that includes Pellham Phillips Architects Engineers, Safety Council of the Ozarks and AT&T Yellow Pages. Pellham Phillips principal Larry Phillips and his former business partner, commercial Realtor Galen Pellham, were among the investors who sold the Eleven Eleven Building – built in 1986 – to White Dog. About 25 people employed by Goss’ human services management firm, WD Management, now occupy about 6,000 square feet on the building’s second floor. The growing company most recently leased space from Alternative Opportunities Inc. at 2626 W. College Ave. Prior to striking a deal for the Eleven Eleven Building, Goss spent two years searching for available office space – mainly along South National Avenue between Battlefield Road and Primrose Street. “There’s supply, but the further south you go and the newer the buildings are, the more per square foot it costs to occupy,” he said. “So (the Eleven Eleven Building) is kind of a blend between the brand-new stuff that’s $16, $18 a square foot and older space you can get for $6 or $8 a square foot.” Realtors who spoke with Springfield Business Journal said a crop of potential buyer-users are on the prowl for office buildings. Pellham, at Pellham Commercial Realtors, said three of his clients who have outgrown their existing space are negotiating to buy three separate office facilities in south Springfield, and he’s hopeful the deals will close in the coming weeks. List prices on the properties range from $500,000 to $1.5 million, he said. “Things are slow and then everything hits you at one time,” Pellham said, noting that some developers are moving forward with plans for additional office space. “Sixty days ago, I would have thought that might be pushing their luck, but seeing how few office buildings there are on the market … Springfield will need additional office space.” Realtors who spoke with Springfield Business Journal said a crop of potential buyer-users are on the prowl for office buildings. Pellham, at Pellham Commercial Realtors, said three of his clients who have outgrown their existing space are negotiating to buy three separate office facilities in south Springfield, and he’s hopeful the deals will close in the coming weeks. List prices on the properties range from $500,000 to $1.5 million, he said. “Things are slow and then everything hits you at one time,” Pellham said, noting that some developers are moving forward with plans for additional office space. “Sixty days ago, I would have thought that might be pushing their luck, but seeing how few office buildings there are on the market … Springfield will need additional office space.” Click to place your web link here. ||||| ©2008 Springfield Business Journal. All rights reserved. | Privacy Policy | Terms & Conditions | Logout About Springfield Business Journal | Advertise With Us | Contact Us | Site Help designed & powered by
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