Global Viewpoints

Poland: Financing of more than 31 million EUR granted for development of Malta Office Park

Edited: Jennifer Brenner
Source: Echo Investment

Echo Investment has completed an agreement for a loan with WESTDEUTSCHE IMMOBILIENBANK AG, for the value of 31.785 million EUR, on the basis of which the bank shall finance realization of the office complex MALTA OFFICE PARK in Poznań, Poland.

The part of the credit shall be assigned for re-financing of development costs of the first phase of Malta Office Park, the remaining amount shall be assigned to cover costs of construction of the next stage of the project and financing of the Borrower’s current operations. The Parties agreed, that the credit shall be repaid within 63 months from the date of signing the agreement.

“This is another significant development financing incurred recently,” says Adrian Karczewicz, Director - Project Financing, responsible for the transaction from Echo Investment side – “In today’s economic reality, banks have intensely exacerbated the financing criteria and the procedures of projects’ verification. Malta Office Park obtained financing thanks to the high quality of the offer, appropriate advancement of the lease out and strong position in the Poznań market. Also the experience and brand of the developer was very important for WESTDEUTSCHE IMMOBILIENBANK, especially as this was the first transaction between us so far.”

Piotr Gromniak, the President of the Management Board of Echo Investment said: “Following the agreement with Eurohypo, this is the second loan for Echo project in the time span of just two weeks. At the sime time, a big, international bank joined the group of our partners. This fact confirms opening up of financial institutions for the developers’ needs. I’m glad, that Echo Investment could present another good and reliable project which was well recognized by the management of WestImmo. I am convinced, that soon other positive decisions shall be made concerning our successive projects.”

Malta Office Park is a modern office complex located at Abp Baraniaka St. in Poznań. The complex comprises six buildings: four, five-floor and two, six-floor buildings. All the buildings are connected through the underground parking. The "open space" standard will assure flexibility in floor arrangements. The whole complex will have nearly 31,000 square meters of leasable area. The number of employees working in the Park will be equal to 2,500-3,000 persons. The strong point of the complex will be approx. 600 parking places in the surface- and underground parking. The office complex will have a number of state-of-art solutions related to technology, security system, as well as monitoring and access control system. The project includes reconstruction of the road system to be adapted to the new needs. The plans are to complete the second stage of the project in 2010.

The design of the Malta Office Park has been prepared in the Poznań architectural office Litoborski-Marciniak.

Sears Tower Unveils $350M Sustainable Plan to Transform Tallest Building in Western Hemisphere

Edited: Jennifer Brenner
Source: Sears Tower

The Sears Tower has announced plans for the most significant sustainable modernization projects of an existing building ever undertaken. The project will result in unparalleled energy savings and reduced CO2 emissions to the tallest building in the Western Hemisphere, reducing the base building electricity use by up to 80 percent, which includes a combination of energy savings and co-generation. The energy savings equal 68 million kilowatt hours annually or 150,000 barrels of oil every year. The sustainability plans also drive economic development in the West Loop, creating more than 3,600 jobs, and are part of a broader initiative to transform the global icon.

"Sears Tower, an iconic structure that defines the city's skyline, will undergo a groundbreaking transformation that creates economic growth with positive impact on our environment, leaving a lasting legacy for future generations," said John Huston of American Landmark Properties, representing the partnership that owns Sears Tower. "As the stewards of this icon, we take seriously our responsibility to make it relevant and successful, and the changes made and benefits realized through the bold sustainable initiatives at the tower serve as an example that a sustainable future is more than a concept, it is within our reach."

The building, which already meets Leadership in Energy and Environmental Design (LEED) criteria, will undertake sustainability initiatives above and beyond those used by the United Stated Green Building Council to rate a green building. Modernization strategies, designed by Chicago-based Adrian Smith + Gordon Gill Architecture (AS+GG), include:

• Efficiency improvements to the building's exterior envelope and windows. The tower has 16,000 single-pane windows. Sustainability plans for the building call for a window replacement and glazing program. Strategies to achieve a thermal break of the curtain wall are also being investigated. These upgrades would achieve savings of up to 50 percent of heating energy.
  
  
• Mechanical systems upgrades in the form of new gas boilers that utilize fuel cell technologies, which generate electricity, heating and cooling at as much as 90 percent efficiency. Mechanical upgrades also will include new high-efficiency chillers and upgrades to the distribution system.
  
  
• The tower's 104 high speed elevators and 15 escalators that will be modernized with the latest technology to achieve 40 percent reduction in their energy consumption.
  
  
• Water savings that will be realized with conservation initiatives through upgrades to restroom fixtures, condensation recovery systems and water efficient landscaping, which will reduce water usage by 40 percent and save 24 million gallons of water each year.
  
  
• Lighting that will be upgraded through advanced lighting control systems and daylight harvesting, an advanced lighting control system that automatically dims lights in tenant spaces based on the amount of sunlight entering through the windows. Combined, these upgrades will save up to 40 percent of lighting energy consumption.
  
  
• Renewable energy like wind and solar, and technologies like green roofs that will be tested. Wind turbines will be tested to take advantage of the tower's height and unique set-back roof areas. Solar hot-water panels will help heat water for the building. Green roofs that can sustain high- altitude conditions, and that will be among the tallest in the world, will be tested to reduce storm water runoff, improve insulation, help mitigate the urban heat island effect, and provide pleasant vistas for tenants overlooking the areas.
  

"Buildings are the world's largest contributor to carbon emissions, and therefore the biggest opportunity to address climate change is to retrofit existing structures," said Adrian Smith, partner, AS+GG. "Our goal in the Sears Tower greening project is to create a holistic approach that integrates high-performance building technologies and design strategies for maximum energy efficiency. In the process, we hope to set a benchmark for how high-rise buildings throughout the world can limit their impact on the environment."

"Sustainable architecture in new buildings is important but not enough to address the climate and energy crises facing our world," added Gordon Gill, partner, AS+GG. "We have to apply what we've learned to our existing stock of commercial buildings--especially iconic structures such as Sears Tower, which we hope will inspire similar initiatives around the globe. These will serve as great examples for building owners and managers and can reposition existing building stock to be as competitive as most new buildings or even better."

As an important part of the modernization program, Sears Tower's plazas and retail spaces will also undergo changes. A new park at Wacker Drive and Adams Street will be an inviting public space with landscaping and seating. The Adams Street granite wall will be replaced with an interactive digital display, glass storefronts, and trees, which will be planted to form a landscaped terrace that will add a natural filter for carbon dioxide.

In addition to the most significant energy efficiency renovations ever undertaken on an existing building, another aspect of the transformation is a proposed new, privately funded hotel for the site at Jackson Boulevard and Wacker Drive. The hotel will be designed for a LEED Gold rating, and will become one of the most sustainable hotels in Chicago. The hotel will fill a critical need in the West Loop and provide a much welcomed facility for existing building tenants.

The reduction in energy use and CO2 emissions realized through the sustainability and modernization plans for the tower also brings economic opportunities by creating more than 3,600 jobs. Extending its impact beyond the site itself, the project will feature a dynamic Sustainable Technology Learning Center that is designed to help building visitors and Chicago tourists learn about ways to save energy and money, as Sears Tower serves as a laboratory that demonstrates to the office building industry how a sustainability program can be accomplished.

"The plans for the building bring new activity to the West Loop, and make it even more attractive to current and future tenants who are looking for more sustainable office solutions," said Robert A. Wislow, chairman and CEO of U.S. Equities Asset Management, the management and leasing agent for the tower. "Today, tenants want the buildings they inhabit to be environmentally friendly and more healthy for their employees. They demand sustainable workplaces. They are doing this because it is the right thing to do, has a positive effect on the environment, helps make their employees more productive and is becoming more and more important to their employees."

The cost of construction for the Sears Tower project is estimated at $350 million. A number of private and public financing and funding options are being explored. The majority of the energy savings will be realized in approximately five years and work will start immediately.

"The Illinois Environmental Council supports private and public investments in projects that spur job creation and economic development here in Illinois, while helping to meet the challenge of global climate change," said Charles Jackson, IEC executive director. "The Sears Tower energy sustainability and environmental education project presents a tremendous opportunity for inspiring building owners and the public to aspire to the highest standards of energy-efficiency."

Sears Tower's commitment to energy efficiency is well established. Since 1989, the building has reduced its annual electricity consumption by 34 percent. Since 1984, its energy efficiency improvements have resulted in a reduction of 51 million pounds of carbon emissions annually, or the equivalent of removing more than 4,400 cars from the road each year.

Simon Takes Over Management of Dallas Galleria

Edited: Jennifer Brenner
Source: Simon Properties

Simon Property Group, Inc., the country's largest owner, developer and manager of high quality retail real estate, announced today that it will assume leasing, management, and marketing duties of two high-quality shopping centers, Galleria Dallas and Novi Town Center in Novi, Michigan. Simon will commence these roles at the two properties on August 1.

"We are pleased to take on the property management functions of these high-quality assets at the request of the institutional owner," said Rick Sokolov, Simon's President and Chief Operating Officer.

Galleria Dallas has been a Metroplex landmark since its debut in 1982. Two hundred stores and over 1,300,000 square feet of total gross leasable area entice residents and visitors alike. Galleria Dallas is anchored by Saks Fifth Avenue, Nordstrom, and Macy's and includes such names as Louis Vuitton, Gucci, Baccarat, and Tiffany & Co. Located at the intersection of I-635 LBJ and the Dallas North Tollway, this four-level property also includes an office tower, a hotel, and its world-famous ice skating rink.

Novi Town Center is an outdoor venue with 44 stores. Located in the Detroit metropolitan area, Novi Town Center is anchored by Borders, Old Navy, and TJ Maxx.

Simon Property Group, Inc. is an S&P 500 company and the largest public U.S. real estate company. Simon is a fully integrated real estate company which operates from five retail real estate platforms: regional malls, Premium Outlet Centers(R), The Mills(R), community/lifestyle centers and international properties. It currently owns or has an interest in 384 properties comprising 261 million square feet of gross leasable area in North America, Europe and Asia. The Company is headquartered in Indianapolis, Indiana and employs more than 5,000 people worldwide.

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Akridge and JPI East Principals Form Multi-Family Company

Edited: Jennifer Brenner
Source: Akridge

Washington D.C.-based office and mixed-use developer, Akridge, together with the former principals of major east coast multi-family developer, JPI East, have formed a joint venture to build on the success the JPI East operations have achieved over the last 10 years. The new venture, to be called Jefferson Apartment Group, will invest in multi-family residential properties in the mid-Atlantic and Northeast regions of the United States.

Jim Butz, former President of JPI East, will be an owner and the Managing Partner of the new venture. Greg Lamb, former Executive Vice President of JPI East, will be an owner and Executive Vice President.

JPI East and Akridge both have a service oriented brand focus, lead the industry in innovative and sustainable development solutions, are champions of workplace excellence, are committed to the communities in which they work, and have similar priorities and company culture.

For Akridge, the new venture provides a diversity of skill, product type and fee stream, and expands its institutional reach in the broader commercial real estate market. Executives from both firms acknowledge the cultural fit to be the most important component for the success of the venture.

“In recent years, it has been one of our goals to have a more significant presence in the multi-family sector,” said Matthew J. Klein, Akridge President. “I have known Jim and Greg for years and have great confidence in their capabilities, integrity and market knowledge. This is a great opportunity to align with proven market leaders.”

The Jefferson Apartment Group team will be initially headquartered in Tysons Corner, Va.

“Jefferson Apartment Group will represent the same top-quality capabilities the market is accustomed to getting from JPI East and Akridge,” said Jim Butz, President and Managing Partner of Jefferson Apartment Group. “We are pleased to enter the market with Akridge as our partner and we look forward to acquiring and developing more first class multi-family properties in Washington and other East Coast cities.”

While at JPI, Butz and Lamb were responsible for acquisition, development, construction and management of over 15,000 units, valued at $3 billion, in fifteen cities on the East Coast. Jefferson Apartment Group will focus on acquisitions and development as well as construction and property management in markets with a high barrier to entry.

The JPI parent company is not involved with this new venture and continues to own and operate almost $2 billion in multi-family assets around the country with operations based in Irving, Texas.

GE Capital Real Estate Expands Investment Management Team

Edited: Jennifer Brenner
Source: GE Capital Real Estate

GE Capital Real Estate has expanded its Global Investment Management team with the appointment of real estate veteran Skip Wells as Fund Manager for Senior Secured Debt Investments.

In this newly created role, Wells will be responsible for the implementation of investment strategies and general fund supervision.

"Skip's broad range of experience in real estate lending, and his deep knowledge of GE Capital Real Estate, makes him a significant addition to our investment team," said Joseph Parsons, president and CEO of Global Investment Management. "Skip will play an integral role in the development of our investment business and in implementing our growth strategy over the coming years."

Wells joins Global Investment Management from GE Capital Real Estate's Strategic Capital Group, where he was Managing Director of Originations. He began his GE career in 1989 with the GE Capital Financial Management Program before holding roles at GE Capital Real Estate as a finance operations analyst, asset manager, underwriter and relationship manager. Skip holds a BS in Finance from the University of Connecticut, where he graduated Summa Cum Laude.

"This new position gives me the opportunity to work with a powerful team in GE Capital Real Estate as we implement investment strategies for future growth with capital from outside GE," Wells said.