COVER STORY, OCTOBER 2008

FINDING THAT NICHE
Today’s office developers are finding the right locations.
Stephanie Mayhew

As market conditions tighten and lending slows, office developers are making sure that they are bringing something unique to the table. Whether is it a boutique office building in one of the hottest neighborhoods in New York City, meeting a growing industry demand in a particular submarket or just offering product that meets general office needs but is a step above the rest, developers are making sure that their new office projects are the right fit in a tight market.

450 West 14th St. ~ New York City

450 West 14th Street is under construction in the Meatpacking District in New York City.

At 450 West 14th Street in the Meatpacking District of Manhattan, New York City, construction is underway on CB Developers’ Class A luxury office tower. The project consists of a 10-story glass tower that sits atop a five-story former cold storage warehouse. In addition, the High Line, a former elevated rail track that is presently being redeveloped into a public park, will run directly through the development.

Having already completed three other developments in the Meatpacking District, Charles Blaichman of CB Developers says the firm understands the area’s tremendous commercial value. The fact that 450 West 14th Street will have the High Line running through it, makes it an even more enticing project.

“I worked on making this deal happen for many years because the High Line runs through the building, which is unique, and I just love the area,” says Blaichman.

Upon completion, the project will feature 114,500 square feet of office space, as well as 7,636 square feet of ground-floor retail space and 4,308 square feet of lower-level retail space.

“I believe that the construction of this office tower, being so well-designed and really beautiful, will help to further legitimize the Meatpacking District as a viable commercial area of the city,” explains Blaichman.

Helmut Lang has signed on for two floors of office space. With two other high-end apparel clients close to sealing a deal, the space continues to be marketed to a wide range of tenants.

“This is a boutique office building for tenants interested in design, fashion or any company that wants to be located in a dynamic area,” notes Blaichman. “Plus, the building offers fantastic views of the city and the river, so I think that’s very attractive to anyone.”

The retail portion of the building is also expected to represent a remarkable draw for retail tenants and shoppers. Located at the entrance of the High Line, those visiting the park will literally be placed right in front of the project’s retail space.

“The Meatpacking district is one of the most coveted neighborhoods in Manhattan. It is often considered one of the hippest and most desirable places to be,” says Kelly Gedinsky of Winick Realty, which is serving as exclusive leasing and marketing agent for the retail space. “The retail traffic is already there, but the High Line will dramatically increase it further — not to mention, the new office tenants and their visitors.”  

In addition to a stellar location, the retail portion will feature unheard-of 23-foot ceiling heights. The developers have chosen to preserve the edgy industrial feel of the space by keeping the original steel columns intact.

“The High Line project is a great idea that will transform the area even more than has already been seen over the past several years — people who come down to use the park will end up staying to shop,” remarks Blaichman.

The project is slated for a first quarter 2009 completion. Morris Adjmi Architects is serving as architect for the development.

Burlington Research Center ~ Burlington, Massachusetts

Burlington Research Center

Development plans are well underway for the Burlington Research Center, a proposed 600,000-square-foot biotechnology and office development in Burlington, Massachusetts. The Gutierrez Company recently received local approvals for biotechnology use, making Burlington Research Center the largest development in the Route 128 marketplace to be cleared for biotech research and development use.

“The project represents a redevelopment of underutilized space in a market that has been strong and growing through the years, and we project that in the future it will continue to grow,” says Scott Weiss, managing director of commercial development at The Gutierrez Company.

The center is slated to include three buildings totaling 590,000 square feet of biotechnology research and development and office space. The office and lab buildings will be certified “green” through the U.S. Green Building Council Leadership in Energy and Environmental Design (LEED) program. In addition, the site will feature extensive water and sewer allocation in line with biotech use. The project will also include a restaurant and retail space, which will be located at 43-63 South Avenue.

As the biotechnology field continues to grow in and around Boston, many companies are looking for ways to expand, but still enjoy easy access to Boston and certain amenities. Situated on a 16-acre site that abuts the highway, the center offers easy access to Route 128, Route 3 and I-93, and it is only roughly 12 miles to Downtown Boston.

“In the past couple of years, there has been an increase in movement of some of the biotech and life science companies out of the Cambridge marketplace into the suburbs,” explains Weiss. “The Burlington Research Center will provide some additional space to some of those companies to grow and expand, and it will further establish Burlington as a great location for biotech and life science companies because it is a high service location with office and high-tech space, and it has a number of amenities that tenants are looking for.”

Jonathan Varholak and Ron Friedman of Richards Barry Joyce & Partners have been named the exclusive leasing agents for Burlington Research Center. Construction is slated to begin on the center once a major tenant has been signed.

Mercer Corporate Center I and II ~ Hamilton, New Jersey

Mercer Corporate Center

Opus East is currently constructing Mercer Corporate Center I and II in Hamilton, New Jersey. Upon completion, the Class A office park is slated to feature 300,000 square feet encompassed within four buildings.

According to Matt Guers, director of real estate for Opus East, Mercer Corporate Center will be an expansion of the company’s investment in Mercer County. Opus East also owns Princeton South Corporate Center, a 1 million-square-foot development in Ewing Township with 750,000 square feet of Class A office space, as well as retail space, and a hotel and conference center.

“Mercer County offers a highly educated and skilled labor force, and a great transportation system. The construction of Mercer Corporate Center will raise the bar on the office product in that market,” says Guers. “As the strong Princeton market grows outward, Hamilton is going to be part of that growth, so we see this as a great opportunity to get in a great up-and-coming market.”

Set on 53 acres just off Route 130, the four office buildings will be convenient to interstates 95 and 195, and the New Jersey Turnpike. Phase I of construction will include two 60,000-square-foot buildings, and phase II is approved for an 80,000-square-foot building and a 100,000-square-foot facility.

The first two office buildings are being designed and built to achieve Green Globe designation, a sustainable building program that utilizes the same elements of energy conservation and sustainable development as the U.S Green Building Council’s LEED program.

“Opus has long been a strong advocate of sustainable design and green buildings,” notes Guers. “For more and more large corporate users, it is becoming a requirement, and there is definitely a pay back as far as cheaper operating expenses in these types of buildings.”

The completion of Phase I is set for first quarter 2009. The groundbreaking and completion of Phase II will be market driven. Opus Architects & Engineers designed the building and Opus East will be handling the leasing efforts.

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